Suppliers Are More Likely to Be Powerful Relative to the Firms

question 45

Multiple Choice

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

• A) differentiation among existing suppliers is high.
• B) the suppliers' industry is highly fragmented.
• C) existing suppliers lack economies of scale.
• D) suppliers' goods or services cannot be substituted effectively.
• E) cost advantages independent of size are negligible.

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Definitions:

Inflammation

The body's immune response to infection, injury, or irritation, marked by redness, warmth, swelling, and pain.

Smooth Muscle

A type of muscle found in the walls of internal organs and blood vessels that is not under conscious control.

Arrector Pili

Small muscles attached to hair follicles in mammals; their contraction causes hair to stand up, known as "goosebumps."

Voluntary Control

The conscious regulation of skeletal muscles and movements by the brain, permitting actions like walking, speaking, and grabbing.