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

Quizplus · Accepted Answer

A consolidated industry structure consists of few companies that are in a position to determine industry price. This means that the market is dominated by a small number of large firms with significant market share, and there are high barriers to entry for new competitors. Examples include industries such as telecommunications, airlines, and banking.

Answer: B 
 A consolidated industry structure can also be seen in industries such as agriculture, dry cleaning, health clubs, and real estate brokerage. In these industries, there may be a large number of small companies competing in a fragmented market, but there tend to be dominant players who have significant market power and are able to influence industry pricing and trends.

Therefore, both options C and B are valid choices as they provide accurate explanations of a consolidated industry structure in different contexts/industries.

A Consolidated Industry Structure