n NISM Certifications
XV NISM Series XV
Medium

An industry with few substitutes, low competition, and weak buyer bargaining power will have strong pricing power and ______.

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Low profit margins

  2. High profit margins

    Correct answer

  3. C

    Nil profit margins

Why this is the answer

Strong pricing power allows companies to charge higher prices without losing customers, resulting in high profit margins.

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