In practice,drawing industry boundaries is:
A)A subjective exercise that depends upon the personal preferences of top managers
B)An objective exercise that requires estimating cross-elasticities of demand for the industry's products
C)A matter of judgment that depends upon the purpose of the analysis
D)Critical to the output of the analysis and therefore should only be undertaken with the help of an academic or consultant

Question

Quizplus · Accepted Answer

The drawing of industry boundaries is a matter of judgment that depends upon the purpose of the analysis. It is subjective and can vary based on the industry and the analysis being conducted. There is no one-size-fits-all approach to defining industry boundaries. Therefore, it is important to understand the objective of the analysis before determining the industry boundaries.

In Practice,drawing Industry Boundaries Is