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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. |
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Tamara Schultz
Learning Outcome Statements
describe the qualitative and quantitative factors used to evaluate a corporate borrower's creditworthiness
CFA® 2024 Level I Curriculum, Volume 4, Module 16.