Industries Where a Decline in Demand Is Most Likely to Cause

question 28

Multiple Choice

Industries where a decline in demand is most likely to cause industry-wide losses tend to have the following characteristics:

• A)High concentration,lack of product differentiation and scale economies
• B)High exit barriers,lack of product differentiation,and a high ratio of fixed to variable costs
• C)High exit barriers,lack of product differentiation,and powerful buyers
• D)Powerful buyers and suppliers and high exit barriers