Series 79 practice questioneasyMarket Share Analysis
A company’s market share increases from 15% to 18% while the total market size remains unchanged. Which of the following is MOST likely?
- AThe company grew faster than its competitors✓ Correct answer
- BThe overall industry contracted
- CThe company’s revenue decreased
- DThe company’s market share declined
Explanation
Why A — The company grew faster than its competitors
With a stable market size, a market share gain indicates the company grew faster than its peers. A contraction, revenue decrease, or a share decline contradict the given facts.
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