The competitive structure of an industry refers to the:
A) number of market segments in the industry.
B) number and size distribution of companies in the industry.
C) number of consumers in the industry.
D) number of manufacturing plants in the industry.
E) number of products produced in the industry.

Question

Quizplus · Accepted Answer

The competitive structure of an industry refers to the number and size distribution of companies in the industry. This includes factors such as the level of concentration in the industry (i.e. whether there are many small firms or a few large firms dominating the market), the degree of competition between firms, and the ease of entry and exit for new firms. Factors such as the number of market segments, consumers, manufacturing plants, and products produced can be important in understanding the competitive dynamics of an industry, but they are not the defining features of its competitive structure.

The Competitive Structure of an Industry Refers to The