Suppliers Are Powerful When Substitutes Are Available, the Selling Industry

question 12

True/False

Suppliers are powerful when substitutes are available, the selling industry is relatively consolidated and switching costs are low.

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Definitions:

Alternative Technologies

Different methods or innovations that can be employed to achieve the same or improved outcomes in production or services.

Isocost Line

A graph that shows all the combinations of capital and labor available for a given total cost.

Expenditures

Outflows of money to another person or group to pay for an item or service, or charges incurred during a business operation.

Capital and Labor

The primary factors of production, where capital refers to physical assets used in production, and labor refers to the human effort contributing to the production process.