A consolidated industry structure: a. provides no scope for an oligopoly to exist. b. constitutes a threat rather than an opportunity. c. consists of a large number of small companies or medium-size companies, none of which is in a position to determine industry price. d. is dominated by a small number of companies or, in extreme cases, by just one company, and such companies often are in a position to determine industry prices. e. is characterized by low-entry barriers and commodity-type products.

Question

Business

Danica

6 November, 10:46

A consolidated industry structure: a. provides no scope for an oligopoly to exist. b. constitutes a threat rather than an opportunity. c. consists of a large number of small companies or medium-size companies, none of which is in a position to determine industry price. d. is dominated by a small number of companies or, in extreme cases, by just one company, and such companies often are in a position to determine industry prices. e. is characterized by low-entry barriers and commodity-type products.

+2

Answers (1)

Know the Answer?

Damari Hicks · Answer 1

Correct option D

dominated by a small number of companies or, in extreme cases, by just one company, and such companies often are in a position to determine industry prices.

Explanation:

Consolidated industry will be able to deal with labourers in a better manner during wage negotiations.

As units join together their capital base will be widened and business can improve as mutual cost is reduced such as advertisement expenses.

They can secure raw material at cheaper rate through bulk purchases from seller.