Final answer:
Profitable follower businesses tend to offer better or less expensive products compared to those with below-average profit performance. Profit margins, calculated as average profit (price - average cost), are key indicators of financial success and relate directly to whether a business can offer competitive pricing while maintaining quality.
Step-by-step explanation:
The question seems to discuss the characteristics of 'profitable share followers' compared to those with below-average profits in a business context. In examining the profitability of these follower businesses, it is important to understand that successful financial performance is typically associated with factors such as offering better or less expensive products, which can increase a company's profit margins.
Profit margins, defined as average profit, are calculated by subtracting the average cost from the price. If the market price is higher than the average cost, the profit margin is positive, leading to a profitable business. In contrast, businesses that fail to provide superior or more cost-efficient products may struggle to maintain profitability, resulting in below-average financial performance.