2023 CFA Level I Exam: CFA Study Preparation

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

A financial analyst must understand the characteristics of market structures to better forecast a firm's future profit stream.

We focus on those characteristics that affect the nature of competition and pricing. They are:

The number of firms (including the scale and extent of foreign competition).
The extent of product differentiation (which affects cross-price elasticity of demand).
The pricing power of seller(s). Can a firm influence the market price?
Barriers to entry. Exit costs should also be considered.
Non-price competition such as product differentiation.

The characteristics of each market structure will be discussed in subsequent subjects of this reading.

You need to log in first to add your comment.

Thanks again for your wonderful site ... it definitely made the difference.

No flashcard found. Add a private flashcard for the subject.