Which of the Following Conditions Acts to Weaken Buyer Bargaining

question 104

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:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Production Possibility Frontier

A curve demonstrating the maximum potential output levels of two goods or services an economy can achieve when all resources are efficiently utilized.

Economic

Relating to the principles and practices of economics or the economy; the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Entrepreneur

An individual who starts and runs a new business, taking on financial risks in the hope of profit.