Which of the Following Statements Is True About Fragmented Industries

question 15

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 because of 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:

Bike Paths

Designated routes or tracks exclusively for bicycles, providing a safe space for cyclists away from motor vehicle traffic.

Public Good

Goods or services that are distributed to all individuals within a society without charge, presented by either public authorities or private entities, not for profit motives.

Free-rider Problem

A situation where individuals or entities benefit from resources, goods, or services without paying for them, which often leads to under-provision of those goods or services.

Private Firms

Businesses that are owned by individuals or groups of individuals and are not controlled or operated by the government.