Which of the Following Factors Requires the Least Consideration When

question 5

Multiple Choice

Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?

• A)Number of competitors in downstream market
• B)Purchase volume of raw materials
• C)Availability of substitute inputs
• D)Number of upstream suppliers
• E)Ability of suppliers to price discriminate

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Definitions:

Labor Market

A market where employers find workers and workers find jobs, characterized by supply and demand for labor.

Marginal Expenditure Curve

A graphical representation that shows how total expenditure changes as the quantity of a good or service purchased varies.

Economic Rents

Earnings in excess of the economically or socially necessary cost of bringing a factor of production into use.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply.