GAQM CDCS-001 Q&A - in .pdf

  • CDCS-001 pdf
  • Exam Code: CDCS-001
  • Exam Name: Certified Data Centre Specialist (CDCS)
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  • Exam Code: CDCS-001
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NEW QUESTION: 1
A fragmented industry is most likely to:
A. Be characterized by suppliers with little bargaining power.
B. Have low transportation costs.
C. Approximate pure competition.
D. Have substantial economies of scale.
Answer: C
Explanation:
According to Michael E. Porter, individual firms in a fragmented industry have insignificant market shares and little influence on industry outcomes. Examples are retailing, agriculture, and creative enterprises. Thus, the situation approximates what economists call pure competition. Moreover, the industry has many small- or medium-sized firms with no market leader, products may or may not be significantly differentiated, and the technology may or may not be sophisticated.

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