In an Industry, the Profits Earned by Firms Are Determined

question 29

Multiple Choice

In an industry, the profits earned by firms are determined by

• A)the overall economic situation, and porter's five forces of competition.
• B)the degree of concentration of the industry.
• C)the existence of barriers to entry in the industry.
• D)the value of the product for customers, the intensity of competition, and the relative bargaining powers of producers, their suppliers and their buyers.

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Definitions:

Business Enterprise

A business enterprise refers to an organization engaged in commercial, industrial, or professional activities, aiming to generate profits through providing goods or services.

Deceit

The act of misleading or deceiving someone intentionally.

False Representation

The act of making an untrue or misleading statement about a product, service, or situation which may deceive others.

Intention of Deceiving

The deliberate act of misleading or tricking someone to gain an advantage or cause harm.