Options
- A
Low sales margins
- B
Low bargaining power with suppliers
-
Prices set according to market competition
Correct answer
- D
Low manufacturing cost
Why this is the answer
In competitive industries, companies lack pricing power. If one competitor lowers prices, others must follow to remain competitive, making them price takers rather than price makers.
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.