e choice questions: 1. Industry classification systems from commercial index providers typically classify firms by: 28) on chapter 4 of your textbook and A. statistical methods. B. products and services. C. business cycle sensitivity 2. Firms and industries are most appropriately classified as cyclical or non-cyelical based on: A. their stock price fluctuations relative to the market. B the sensitivity of their earnings to the business cycle. C. the volatility of their earnings relative to a peer group. 3. An analyst should most likely include two firms in the same peer group for analysis if the firms: A. are both grouped in the same industry classification. B. are similar in size, industry life-cycle stage, and cyclicality C. derive their revenue and earnings from similar business activities. 4. The industry experience curve shows the cost per unit relative to: A. output. B. age of firms. C. industry life-cycle stage. 5. Greater pricing power is most likely to result from greater: A. unused capacity. B. market concentration. 6. Which of the following statements best describes the relationship between pricing power and ease of entry and exit? Greater ease of entry: A. and greater ease of exit decrease pricing power. B. and greater ease of exit increase pricing power. C. decreases pricing power and greater ease of exit increases pricing power. C. volatility in market share