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Basic Question 4 of 9
Which industry is likely to be concentrated with strong pricing power?
B. PCs
C. homebuilding
A. tobacco
B. PCs
C. homebuilding
User Contributed Comments 2
| User | Comment |
|---|---|
| czar | could someone please explain this ? |
| To-be-CFA | @czar: Concentrated = No. Of firms in the market. Pricing power = Ability to influence the price of the products. Since, tobacco is an addiction, it's easy for firms to take a call on prices without feeling the pressure on sales. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the qualitative and quantitative factors used to evaluate a corporate borrower's creditworthiness
CFA® 2025 Level I Curriculum, Volume 4, Module 16.