A Supplier of an Input Is Unlikely to Have Bargaining

question 107

Multiple Choice

A supplier of an input is unlikely to have bargaining power if

• A)the input supplied is specialised.
• B)many firms can supply the input.
• C)it is the sole supplier of the input.
• D)it has a patent on the input.

---

Definitions:

Dividend Payout Ratio

A financial metric that shows what percentage of a company's earnings are distributed to shareholders as dividends.

Additional Debt

Borrowing more funds in addition to existing debt, which can increase a company's leverage and financial risk.

Operating Capacity

The maximum output that a company can produce under normal conditions within a given period using its existing resources.

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid out to shareholders as dividends.