The profit earned by an industry is likely to be low if the
A)industry has only a few large customers.
B)industry has many customers.
C)product produced in the industry has only a few substitutes.
D)degree of rivalry among industries is low.

Question

Quizplus · Accepted Answer

Having only a few large customers increases the risk for an industry because its revenue depends heavily on the purchasing decisions of a small number of buyers. This can lead to lower bargaining power and potentially lower profits.

The Profit Earned by an Industry Is Likely to Be