Which of the following industry structures consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price?
A)Fragmented industry
B)Consolidated industry
C)Oligopoly
D)Monopoly
E)Sector

Question

Which of the following industry structures consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price?
A)Fragmented industry
B)Consolidated industry
C)Oligopoly
D)Monopoly 
E)Sector

Quizplus · Accepted Answer

A fragmented industry consists of many small or medium-sized companies, none of which has significant market power. Therefore, none of them can determine industry price. In such an industry structure, companies compete mostly on non-price factors, such as quality, design, and customer service, to differentiate themselves from their rivals.

Which of the Following Industry Structures Consists of a Large