The Bargaining Leverage of Suppliers Is Greater When

question 107

Multiple Choice

The bargaining leverage of suppliers is greater when

• A)the suppliers' products/services account for a small percentage of industry members' costs.
• B)industry members incur low costs in switching their purchases from one supplier to another.
• C)industry members account for a big fraction of supplier's sales.
• D)there is extensive seller-supplier collaboration.
• E)the supplier industry is composed of a large number of relatively small suppliers.

---

Definitions:

Market Value

The current value of an asset or company based on the price that it can be sold for on the open market.

Historical Cost

The initial cost of an asset or investment when it was first purchased.

Patents

Legal documents granting exclusive rights to inventors for their innovations, preventing others from making, using, or selling the invention for a certain period of time.