An Advantage of Concentrating on a Single Industry Is That

question 45

True/False

An advantage of concentrating on a single industry is that by staying in one industry a firm can focus its resources and capabilities on competing successfully in just one business.

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Definitions:

Earn Less Profit

A scenario where a business or individual generates a lower amount of financial gain from operations or investments.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Earn More Profit

Refers to the increase in net revenue a company achieves through strategies such as cost reduction, price adjustment, or market expansion.

Elastic Demand

A condition in which the percentage change in quantity demanded of a product is greater than the percentage change in its price, indicating high sensitivity to price changes.