Option B sounds right… curve decline will experience excess capacity which means a decrease in the utilization of capital equipment?
Which of the following statements concerning companies in different industry environments is most accurate?
A.Companies in mature industries tend to focus on efficiency gains and gain market share through superior products.
B. An industry’s experience curve declines with a decrease in the utilization of capital equipment and spreading overhead over a fewer number of units.
3.Companies in fragmented industries would not be highly price competitive because they tend to think individualistically, making coordination difficult.
B is incorrect because an industry’s experience curve declines with an increase in the utilization of capital equipment and spreading overhead over a larger number of units.