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:

Radio

A technology that uses radio waves for communication by transmitting and receiving sounds, such as music and voice, over distances without wires.

Satellite

An artificial object placed into orbit around the Earth or another planet in order to collect information or for communication.

Fiber

A type of material used in various industries, or short for optical fiber, a technology used for transmitting information as pulses of light along strands of glass or plastic.

Wi-Fi Hotspot

A physical location where people can access the Internet, typically using Wi-Fi, via a wireless local area network (WLAN) with a router connected to an internet service provider.