Question

The sentences given, when properly sequenced, form a coherent paragraph. Each sentence is labelled with a letter. Choose the most logical order of sentences from among the given choices to construct a coherent paragraph. Sentence 1 and 6 are fixed starting and ending of the paragraph. 
1. Intensity of competition in an industry is neither a matter of coincidence nor bad luck. 
(a) The collective strength of these forces determines the ultimate profit potential in the industry where profit potential is measured in terms of long run returns on invested capital. 
(b) Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behavior of current competitors. 
(c) Not all industries have the same potential. 
(d) The state of competition in an industry depends on five basic competitive forces. 
6. They differ fundamentally in their ultimate profit potential as the collective strength of the forces differs. 

 

Hint:

Focus on how rationality impacts psychological engagement in games, as emphasized in the passage.

Answer 1

- Sentence B refutes the idea of coincidence by stating that competition is due to economic structure.
- Sentence D introduces the five competitive forces that form this structure.
- Sentence A explains how these forces affect profitability.
- Sentence C sums up that not all industries benefit equally, which ties into the final sentence.
- Therefore, B-D-A-C is the most coherent sequence.