In Which One of the Following Instances Is Supplier Bargaining

question 38

Multiple Choice

In which one of the following instances is supplier bargaining power and leverage not weakened?

• A)when industry members pose a credible threat of backward integration into the business of suppliers
• B)when the cost of switching from one supplier to another is low
• C)when the items purchased from suppliers are in short supply
• D)when the buying firms purchase in large quantities and thus are important customers of the suppliers
• E)when the item being supplied is a commodity

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