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Being in the best industry guarantees outstanding profits. True or False

Being in the best industry guarantees outstanding profits.

True or False

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Answer #1

"False"

Profit is made by the firms in an industry, if its a monopoly the industry i.e. the firm will make a profit because there is only one firm in the industry like US railways. If the firm is in an industry that is perfectly competitive there may or may not be a profit. Similarly with a firm which operates in an industry that has a structure of monopolistic competition.

Industry will be defined as all the firms in the market producing the same good. Like Cloth industry, fishing industry there can be a number of or just one firm in that industry that will decide the market structure and profits.

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