An Automobile Manufacturer Is Dependent on a Single Supplier for Tires

question 82

Multiple Choice

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which of the following statements is true?

• A) The barriers to market entry are low.
• B) The buyer has greater bargaining power.
• C) The threat of new entrants is high.
• D) The supplier has significant bargaining power.

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Definitions:

Valence Electrons

The electrons in the outermost shell of an atom, which determine the atom's chemical properties and its ability to form bonds.

Hydrogen Bonds

Weak bonds between a hydrogen atom in one molecule and an electronegative atom (often oxygen or nitrogen) in another, important in the structure of water and DNA.

Carbon Atom

The fundamental chemical element with symbol C, essential to all known life forms and the basis of organic chemistry.

Carboxyl Group

A weakly acidic functional group; abbreviated —COOH.