Which of the following is not a characteristic of a fragmented industry?
A) Low barriers to entry
B) Diseconomies of scale
C) Constant entry of new competitors
D) Very specialized customer needs
E) High barriers to exit

Question

Quizplus · Accepted Answer

Fragmented industries are typically characterized by low barriers to entry, constant entry of new competitors, and specialized customer needs. Diseconomies of scale may also be present, as firms are often small and lack the resources to take advantage of economies of scale. However, high barriers to exit would be more characteristic of a consolidated industry, where the few firms that dominate the market have significant competitive advantages over new entrants, making it difficult for them to exit the industry.

Which of the Following Is Not a Characteristic of a Fragmented