Which of the following takes place when an industry matures?
A) It forces more efficient producers to increase prices to gain market share.
B) It forces the producers to substitute skilled craft work with cheaper labor.
C) It results in less standardized production methods thus forcing employers to hire low skilled labor.
D) It gets dominated by relatively few firms and the less dominant either mimic the leader or occupy niches.

Question

Quizplus · Accepted Answer

When an industry matures, it tends to get dominated by relatively few firms who have achieved economies of scale and established strong brand recognition. These firms may mimic the leader or occupy niches in the market. The less dominant firms may struggle to compete and may either go out of business or be acquired by the larger firms. This trend towards concentration in the industry can lead to reduced competition and higher prices for consumers.

Which of the Following Takes Place When an Industry Matures