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1. Which of the following is least likely to be one of the 5 external influences...

1. Which of the following is least likely to be one of the 5 external influences that affect industries' growth, profitability and risk?

A. Demographics

B. Industry capacity

C. Social influences

2. High industry concentration:

A. Results in pricing power.

B. Results in pricing power if the industry is capital intensive.

C. Results in pricing power if the products are highly differentiated.

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Answer #1

Question no. 1 Answer is Option A

Because Demographics is one of the important external factor that influence the industry indirectly, it constitutes of age, income level of people and region etc., when we manufactured a product need to consider all these things.

Question no. 2 Answer is Option B

Because capital intensive huge amount of investment to produce goods and services.

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