Fragmented industries are more receptive to new entrants than industries that are dominated by a handful of large firms.

Question

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Fragmented industries are characterized by having many small firms without a dominant market share, which means there is less barrier for new entrants to enter the market and compete against incumbents. In contrast, concentrated industries with few dominant firms often have high barriers to entry, making it difficult for new entrants to compete effectively.

Fragmented Industries Are More Receptive to New Entrants Than Industries