Whereas industry ________ results in an industry with fewer players, ________ results in fewer industries.
A) consolidation; concentration
B) concentration; consolidation
C) conglomerates; oligopolies
D) convergence; conglomerates

Question

Quizplus · Accepted Answer

Consolidation refers to the process of two or more companies merging or acquiring each other, leading to fewer players in the industry. This can result in a more concentrated market with increased market power for the remaining firms. On the other hand, concentration refers to the extent to which market share is held by a few large firms in an industry, regardless of how they got there. In contrast, the term conglomerates refers to companies that own and operate businesses in multiple industries, while oligopolies refer to markets dominated by a few large firms. Finally, convergence refers to the process of industries or technologies becoming more similar or blending together, which is not directly related to the number of players or industries involved.

Whereas Industry ________ Results in an Industry with Fewer Players