- CFA Exams
- CFA Level I Exam
- Study Session 13. Equity Investments (2)
- Reading 40. Introduction to Industry and Company Analysis
- Subject 4. Principles of Strategic Analysis
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 |