Concentrated Industries Differ from Fragmented Industries in That in Concentrated

question 32

Multiple Choice

Concentrated industries differ from fragmented industries in that in concentrated industries:

• A) exit barriers for businesses are unusually high.
• B) growth rate of demand for the industry's offerings is usually low.
• C) competitors are well-differentiated from each other.
• D) fixed costs of managing a business are very high.
• E) businesses tend to keep their competition rather polite.

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Definitions:

Raw Material

Basic material that is used in the manufacturing process to produce goods, often processed and transformed into finished products.

Cash Outflows

Money that exits a business or an individual's account, typically for payments or purchases.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investing, and financing activities.

Control Costs

The process of monitoring and managing expenses to adhere to a budget and maximize efficiency.