Jamie is a manager in an industry that has a few large players and that has remained relatively stable over the past few years. He finds out that legislators are proposing new laws to deregulate the industry. If the laws pass, which of these scenarios will Jamie most likely face?
A) many new competitors
B) technological innovation
C) the end of globalization
D) across-the-board price increases

Question

Quizplus · Accepted Answer

Consolidated industry structures may break up and become more fragmented. This generally happens when there are external shocks to an industry such as deregulation, new legislation, technological innovation, or globalization. For example, the emergence of the internet moved the stock brokerage business from an oligopoly controlled by full-service firms to monopolistic competition with many generic online brokers.

Jamie Is a Manager in an Industry That Has a Few