Porter's Five Forces Determines the Characteristics of the Industry,how Profitable

question 88

True/False

Porter's five forces determines the characteristics of the industry,how profitable it is,and how sustainable that profitability will be.

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Definitions:

Diminishing Returns

A principle which states that as more units of a variable input (like labor) are added to fixed inputs (like capital), the additional output from each new unit of input will eventually decrease.

Wage Rates

The fixed amount of compensation paid to employees for their labor, typically measured per hour or piece.

Economy's Rate of Growth

The steady increase in the gross domestic product (GDP) or gross national product (GNP) of an economy over time, indicating economic expansion.