Session 11: Equity Valuation: Industry and Company Analysis in a Global Context Reading 40: Industry Analysis
LOS f: Explain factors that affect industry pricing practices.
There are at least four factors that contribute to a firm’s profitability and pricing decisions. All of the following are factors that firms consider when establishing their pricing practices EXCEPT:
A) |
ease of entry into the industry. | |
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The four factors that affect industry pricing practices are product segmentation, degree of industry concentration, ease of industry entry, and price changes in key supply inputs. |