Suppliers Are Powerful When the Industry Is Dominated by a Few

question 117

True/False

Suppliers are powerful when the industry is dominated by a few large companies, no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, or switching costs are high.

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Definitions:

Wage

Compensation or payment to an employee for labor or services rendered, typically expressed on an hourly, daily, or piecework basis.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Wage

A wage is the compensation paid to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Output

The quantity of goods or services produced in a given period by an individual, firm, or country.