Different Businesses Are Said to Be Unrelated When

question 47

Multiple Choice

Different businesses are said to be unrelated when

• A)they are in different industries.
• B)the products of the different businesses are not bought by the same types of buyers or sold in the same types of retail stores.
• C)the products of the different businesses satisfy different buyer needs.
• D)the businesses have different supply chains and different types of suppliers.
• E)there is an absence of competitively valuable strategic fits between their respective value chains.

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Definitions:

Oligopoly

An economic condition where few companies have significant control over an industry or product, limiting competition and potentially influencing prices and production.

Herfindahl-Hirschman Index

An index used to assess the concentration of market power to determine the degree of competition in a sector.

Squared Market Shares

A measure used in economics to assess the level of market concentration by squaring the market share percentages of each firm within the industry and then summing them.

Concentration

The degree of market power held by a few companies within an industry, often measured using indices like the HHI.