The given statement " The industrial organization (I/O) model suggests that above-average returns are determined primarily by the firm's unique internal resources rather than by external capabilities " is FALSE
Step-by-step explanation:
Industrial Organisation Model: Above-average returns are primarily calculated by the company's EXTERNAL factors.
---Industry structure
---Attractiveness of the external environment
The industry in which a company participates has a stronger impact on the performance of the company than the managers make choices within their organisations.
The industrial organisation model allows companies to get a better indication on a competitor's behavior through the use of game theory. Game theory, also known as immersive decision theory, comprises of a limitless amount of players (the competition) and a limited number of decisions they can create.