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.

False

The industrial organization (I/O) model does not suggests that above-average returns are determined primarily by the firm's unique internal resources rather than by external capabilities.

Explanation:

The industrial organization model is a theory in the business and administrative sciences that describes how external conditions determine an organization's earnings, behavior, and success. The theory considers that demand, competitiveness, similar objectives, and strategies delimit the outcome of the industries and the success of the organizations inside the markets.

The industrial organization (I/O) model suggests that forces external to the company determines the company Above Average Return of an organization. Furthermore, it believes that the conditions, features and characteristics of the external environment will determine the correct strategies that needs to be adopted for the firm to achieve above Average Returns.

Explanation:

The industrial organization (I/O) model suggests that forces external to the company determines the company Above Average Return of an organization. Furthermore, it believes that the conditions, features and characteristics of the external environment will determine the correct strategies that needs to be adopted for the firm to achieve above Average Returns.