Equity Schweser Q's

Question 1

firm is most likely to have pricing power if: a.exit cost high b.differentiated product c.high market share

Answer 1

b. “Firms offering products that are differentiated in terms of quality and features are more likely to have pricing power than firms that produce undifferentiated (commodity-like) products.”

Question 2

firm that pursues differentiation MOST likely wants to emphasize a. gains in mkt share b.op efficiency c. mkt research

Answer 2

c. “emphasize market research to identify needs for which customers are willing to pay a premium” others are for LOW cost

Question 3

what is more volatile, P/S or P/E multiple?

Answer 3

P/S multiple