In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

Question

Quizplus · Accepted Answer

Competition among firms in an industry affects prices, costs, and the investment required to compete effectively. High levels of competition lead to lower profits for firms in the industry, while low levels of competition lead to higher profits. Therefore, in most industries, the level of competition is the major determinant of industry profitability.

In Most Industries, the Major Determinant of Industry Profitability Is