Answer:
An industry with one strategic group is indicative of a perfect competition scenario where many sellers offer identical products, buyers and sellers are informed, and there is free market entry and exit.
Step-by-step explanation:
An industry contains one strategic group when all sellers compete in a market environment described as perfect competition. Perfect competition is characterized by many sellers, identical products, informed buyers and sellers, and free entry and exit of firms into the market. Under perfect competition, individual sellers cannot influence the price of the product; hence, they are known as price takers. This environment necessitates that sellers cluster together in terms of strategies and functionalities, often not competing primarily through price, service, or quality differentiation.
Additionally, in a perfectly competitive market, many buyers are available to purchase products, and sellers have all relevant information to make rational decisions. These conditions lead to all firms selling homogeneous products and entering or exiting the market with ease, reflecting the absence of significant barriers or costs.