Question

Identify features of an industry that help or hinder efforts to form a cartel that seeks to restrain output and earn economic profits

Short answer

• Economic profit is calculated by deducting opportunity cost from accounting profit.
• The opportunity cost is the investment that the company will have to forego in order to invest in the current opportunity.
• When we talk about profit in a business, we usually mean accounting profit.

Step-by-step solution

Introduction of industry

• A set of firms that produce/manufacture or handle the same sort of goods or service is referred to as an industry.
• As a result, the term "industry" is applied to a group of smartphone makers. Industries are classified as secondary activity.
• Manufacturing operations, for example, turn basic resources into more useful goods for consumers.

Step 2:Characteristics of the Industry 

• Characteristics of the Industry To get a complete picture of an industry, it will be necessary to review reports from multiple sources..
• The geographic scope of the industry, the boundaries of the industry, and the dominant economic characteristics of the industry are all key characteristics of the industry.

Economic profit 

• Economic profit is calculated by deducting opportunity cost from accounting profit.
• The opportunity cost is the investment that the company will have to forego in order to invest in the current opportunity.
• When we talk about profit in a business, we usually mean accounting profit.