A Fragmented Industry Is One Composed of a

question 74

Multiple Choice

A fragmented industry is one composed of a

• A) small number of large firms.
• B) large number of small firms.
• C) large number of small and medium-sized firms.
• D) small number of small firms.
• E) large number of one-person firms.

---

Definitions:

Fixed Costs

Regardless of how much is produced or sold, certain costs like rent, employee salaries, and insurance payments do not vary.

Variable Costs

Expenses that change in proportion to the activity of a business.

Selling Price

The price at which a product or service is sold to the customer.

Capital Structure

The composition of a company's funding through debt and equity, and how it impacts its risk and value.