Using Porter's analysis, firms are likely to generate higher profits if the industry includes which of the following?
A) to enter
B) Unlimited rivalry
C) Buyers are strong
D) There are many substitutes

Question

Quizplus · Accepted Answer

According to Porter's analysis, firms are likely to generate higher profits if the industry is difficult to enter or has high barriers to entry. This reduces competition and allows for more pricing power and higher profits. Unlimited rivalry, strong buyers, and many substitutes all increase competition and lower profitability.

Using Porter's Analysis, Firms Are Likely to Generate Higher Profits