Which of the Following Is NOT a Reason for Fragmentation

question 1

Multiple Choice

Which of the following is NOT a reason for fragmentation?

• A) Lack of scale economies may mean that there are few, if any, cost advantages to large size.
• B) There is no established brand loyalty in the market segment.
• C) The lack of scale economies and national brand loyalty often implies low entry barriers.
• D) The company is specialty company that operates in local or regional markets or is focused on specialized or custom-made products.
• E) Brand loyalty in the industry may primarily be local.

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Definitions:

Characteristics

describe the distinct features or qualities that help in identifying, defining, or classifying subjects, objects, or concepts.

Utility-Maximizing Rule

An economic principle that states individuals allocate their income in a way that maximizes their total utility, based on the marginal utility per unit of price for goods or services.

Algebra

A branch of mathematics that deals with symbols and the rules for manipulating these symbols, representing quantities and expressing mathematical relationships.

Marginal Utility

The added satisfaction a consumer gains from consuming an additional unit of a good or service.