If a Supplier Has High Power, What Can It Do

question 155

Multiple Choice

If a supplier has high power, what can it do to influence its industry?

• A) Charge higher prices.
• B) Shift costs to industry participants.
• C) Limit quality or services.
• D) All of these.

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Definitions:

Work Shift

A period of time during which a group of workers performs their job duties at a company or workplace.

Electricity Costs

The amount incurred by a business or individual for the use of electricity over a specific time period.

Kilowatt-hour

A unit of energy measurement equivalent to one kilowatt of power expended for one hour of time, commonly used for billing electricity usage.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing the asset’s decrease in value over time.