Which of the Following Statements Is True About Fragmented Industries

question 73

Multiple Choice

Which of the following statements is true about fragmented industries?

• A) They are usually characterized by large mass-production operations.
• B) They essentially enjoy a national brand loyalty.
• C) They require companies to use focus strategies to meet specialized customer needs.
• D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale.
• E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices.

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Definitions:

Numeraire

A standard unit of account in which prices and values are expressed; it serves as a measure for comparing the worth of goods or services.

Endowed

Provided with a quality, ability, or asset.

Perfect Substitutes

Goods that can be used in place of each other with no loss of utility by the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, where an increase in demand for one leads to a corresponding increase in demand for the other.