Final answer:
The question asks about the influence of industry versus firm characteristics on profitability, with given options for percentages. It's important to understand that industry effects and firm-specific actions contribute to profitability, but without specific research data, the exact percentages cannot be provided. Typically, industry effects account for a significant portion, yet firm characteristics could explain a larger share of the profitability variance.
Step-by-step explanation:
The student's question pertains to the influence of industry versus the firm's characteristics and actions on the profitability of a firm. While specific research data is not provided in the question, it's generally understood in the field of economics and business studies that both industry characteristics and firm-specific actions play a significant role in determining a firm's profitability. However, the exact percentages can vary based on different studies and methodologies.
In the context of this question, it's important to recognize that the profitability variance attributed to industry versus firm characteristics involves understanding market structure, competitive strategies, and firm efficiency. For example, an industry with high barriers to entry and less competition might allow firms to have higher profitability due to less price competition, which is an industry effect. On the other hand, a firm with strong brand recognition or superior technology can outperform industry averages, suggesting firm-specific attributes are at play.
Without specific data points indicating the percentages related to the question, it's not possible to provide the exact answer. Typically, studies might indicate that industry effects account for a significant portion of profitability variance—but less than half—whereas firm-specific actions and characteristics could potentially explain the majority of the variation in profitability.