A Supplier of an Input Is Unlikely to Have Bargaining

question 129

Multiple Choice

A supplier of an input is unlikely to have bargaining power if

• A)the input supplied is specialized.
• B)many firms can supply the input.
• C)it is the sole supplier of the input.
• D)it has a patent on the input.

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Definitions:

Invitation

An offer to deal or negotiate that indicates a willingness to enter into a contract under specified terms.

Firm Offer

An offer made in writing by a merchant guaranteeing to hold the offer open for a specified period of time without revocation.

UCC

The Uniform Commercial Code, a set of comprehensive statutes designed to unify and standardize sales and commercial transactions in all 50 states.

Counteroffer

A new offer made in response to an offer received, implying rejection of the original offer.