John Signed a Two Year Contract with Z-Gadget to Get

question 2

Multiple Choice

John signed a two year contract with Z-Gadget to get a subsidized price on his new iPhone.He had Z-Gadget's service for only 6 months and has been dissatisfied with its service and wanted to cancel the contract.However,he did not do so because he will have to spend a lot for canceling his Z-Gadget contract and signing up for another alternative.Which of the following characteristics of a powerful supplier group does Z-Gadget have with respect to its contract with John?

• A) The supplier industry is more concentrated than the industry it sells to
• B) Industry participants face switching costs in changing suppliers
• C) Suppliers offer differentiated products
• D) No substitutes exist for what the supplier group provides