The Bargaining Power of an Industry's Suppliers Is Greater When

question 14

Multiple Choice

The bargaining power of an industry's suppliers is greater when:

• A) the supply industry is fragmented.
• B) switching costs are minimal for companies because of little difference among products offered by different suppliers.
• C) the industry buys in large quantities.
• D) the product that suppliers sell has many substitutes and is not vital to the companies.
• E) the industry is not an important customer to the suppliers.

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Definitions:

Economic Decision

A choice made by individuals, businesses, or governments that involves the allocation of resources, considering the costs and benefits to optimize outcomes.

Surpluses and Shortages

Conditions where the quantity of a good or service exceeds or falls short of the quantity demanded at a given price.

Competitive Behavior

Actions taken by businesses aimed at gaining an advantage over rivals in the market, often through pricing, innovation, or marketing strategies.

Economic Choice

The decision made by individuals or organizations regarding the allocation of resources or the selection among alternate goods and services.