Final answer:
A fragmented industry is one where many small or medium-sized firms operate without a dominant market share, often with small economies of scale relative to the market size.
Step-by-step explanation:
An industry in which a large number of small or medium-sized firms operate, and where no small set of firms has dominant market share or creates dominant technologies, is known as a fragmented industry. This scenario is often characterized by a lack of economies of scale, or economies of scale being very small compared to the size of the market, leading to many firms operating on a smaller scale. These firms may have a well-respected brand name built up over years, but none possesses enough power to control market prices or decisions, unlike in oligopolistic or monopolistic competition, where several large firms or many producers with varied but similar products dominate, respectively.
The correct answer is A) fragmented. A fragmented industry is one in which a large number of small or medium-sized firms operate, and no small set of firms has dominant market share or creates dominant technologies. In a fragmented industry, there is no single firm that has significant control over the market. For example, the restaurant industry is often considered fragmented, with many small independent restaurants operating without one dominating the market.