If a Supplier Has High Power What Can It Do

question 323

Multiple Choice

If a supplier has high power what can it do to influence its industry?

• A)Charge higher prices.
• B)Shift costs to industry participants.
• C)Limit quality or services.
• D)All of the above.

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Definitions:

Total Cost

The complete expense incurred in the production of a set amount of goods or services, including both fixed and variable costs.

Cost Of Capital

The required return necessary to make a capital budgeting project, such as building a new plant, worthwhile.

Cost Of Labor

The total cost incurred by employers to compensate employees, including wages, benefits, and taxes associated with employing labor.

Total Cost

The sum of all costs incurred by a business in producing a certain level of output, including both fixed and variable costs.