In the Market for Local Bus Services in the UK

question 50

Multiple Choice

In the market for local bus services in the UK, the five-firm concentration ratio was found to be 69 per cent. Only another five companies had a share of the market which exceeded 1 per cent. Given this information, which of the following statements is most likely to be true?

• A) The total number of firms serving the market is likely to be very high.
• B) It is likely that the firms in the market engage in head-to-head competition rather than
• C) The quality of the local bus services offered is likely to be high.
• D) There are likely to be high sunk costs in the market, which form a natural entry barrier.

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Definitions:

Performance-Oriented Values

Cultural, organizational, or personal values that emphasize achieving results, efficiency, and effectiveness.

GLOBE Study

A research project focusing on leadership and organizational behavior across different cultures and nations, examining the impact of cultural variables on leadership efficacy and organizational success.

Performance Orientation

A focus or emphasis on the achievement, outcomes, and results of work or tasks, often prioritized in organizational settings.

Cultural Dimensions

Theoretical frameworks proposed to explain the impact of culture on people’s values, behaviors, and communication styles.