A consolidated industry structure:
A)consists of a large number of small companies.
B)can be seen in agriculture, dry cleaning, health clubs, and real estate brokerage.
C)consists of few companies that are in a position to determine industry price.
D)provides no scope for oligopoly to exist.
E)is characterized by low-entry barriers and commodity-type products.

Question

A consolidated industry structure:
A)consists of a large number of small companies.
B)can be seen in agriculture, dry cleaning, health clubs, and real estate brokerage.
C)consists of few companies that are in a position to determine industry price.
D)provides no scope for oligopoly to exist. 
E)is characterized by low-entry barriers and commodity-type products.

Quizplus · Accepted Answer

A consolidated industry structure consists of a few dominant companies that have significant market power and can influence industry prices. This is in contrast to a fragmented industry structure, which consists of many small companies with limited market power. Sectors such as telecommunications, banking, and oil and gas are examples of consolidated industry structures.

A Consolidated Industry Structure