Which of the Following Conditions Acts to Weaken Buyer Bargaining

question 25

Multiple Choice

Which of the following conditions acts to weaken buyer bargaining power?

• A)when buyers are unlikely to integrate backward into the business of sellers
• B)when buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs
• C)when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low
• D)when the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product
• E)when buyers are few in number and/or often purchase in large quantities

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Definitions:

S&P 500 Index

A stock market index that measures the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

Arbitrage Profit

Earnings realized from buying and selling the same asset in different markets to take advantage of differing prices for the same asset.

Corn Future Contract

A standardized legal agreement to buy or sell corn at a predetermined price at a specified time in the future, used as a financial instrument for speculation or hedging.