- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 16. Credit Analysis for Corporate Issuers
- Subject 1. Assessing Corporate Creditworthiness
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 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. |