- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 6. Industry and Competitive Analysis
- Subject 5. Competitive Positioning
CFA Practice Question
Which industry is likely to be concentrated with strong pricing power?
B. PCs
C. Homebuilding
A. Tobacco
B. PCs
C. Homebuilding
Correct Answer: A
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | Highly concentrated industries in which firm pricing power is high: alcohol, tobacco, confectionery Highly concentrated industries in which firm pricing power is low: autos, aircraft, oil refining |
| johntan1979 | PCs: Concentrated with weak pricing power Homebuilding: Fragmented with weak pricing power |
| Rohule | tobacco= inelastic demand |