n NISM Certifications
XV NISM Series XV
Medium

An industry has weak bargaining power for buyers and faces low competition. What can we infer about the industry’s pricing power and profit margins?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Strong pricing power and high profit margins

    Correct answer

  2. B

    Strong pricing power and low profit margins

  3. C

    Weak pricing power and high profit margins

  4. D

    Weak pricing power and low profit margins

Why this is the answer

Low competition and weak buyers allow firms to charge higher prices and earn higher margins.

Test yourself for real

Take a full NISM Series XV mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.