Final answer:
The concept linking firm profitability with industry structure is market structure, an important aspect of microeconomic theory that influences firm behavior, market power, and profitability in various competitive conditions.
Step-by-step explanation:
The view based in microeconomic theory that suggests firm profitability is most closely associated with industry structure is closely related to the concept of market structure. The market structure indicates how competitive an industry is, defined by various questions including the extent of market power each firm holds, the number of sellers, barriers to entry for new firms, and the uniqueness of products offered. These characteristics determine a firm's decisions on production, profits, and market behavior, and impact the profitability in perfectly competitive markets, monopoly conditions, monopolistic competition, and oligopoly.