A fragmented industry is one composed of a:
A) single large company that has the power to determine prices.
B) large companies and their subsidiaries.
C) large number of small and medium-sized firms.
D) companies that operate in different locations across the world.
E) a small number of single proprietorships.

Question

Quizplus · Accepted Answer

A fragmented industry is characterized by a large number of small and medium-sized firms that compete against each other. These firms typically do not have significant market power and may have limited resources to invest in research and development or marketing. This often results in intense competition and relatively low profit margins. Therefore, option C is the best choice.

A Fragmented Industry Is One Composed of A