1 The industrial organization IO view discusses the importan

1. The industrial organization (IO) view discusses the importance of how an industry is structured and the impact of this on long run profitability; the forces that impact profitability include which of the following: a. barriers to entry b. cooperation amongst suppliers (i.e. low rivalry) c. few substitutes d. low supplier power e. all of the above.

Solution

According Me Two forces will impact the long run profitability.One has possitive impact and second has negative impact.

1.Barriers to entry- due to barriers new firms will not enter in the market so exist firms will get benefit of non competition.

2. low supplier power- due to this firm will not able to use its maximum capicity of the production factors so they will no able to enjoy the economies of the scale.