Competitive Pressures Stemming from Buyers' Bargaining Power Tend to Be

question 63

Multiple Choice

Competitive pressures stemming from buyers' bargaining power tend to be weaker when

• A)the number of buyers is small,such that each customer's business tends to be particularly important to a seller.
• B)buyer demand is growing slowly or maybe even declining.
• C)the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.
• D)buyers are well informed about sellers' products,prices,and costs.
• E)the buyer group consists of a few large buyers and the seller group consists of numerous small firms.

Recognize the characteristics of a farsighted organization, including emphasis on long-term development and innovation.

Understand the impact of strategic planning on business performance and the importance of strategic management for all organizational members.

Identify various modes of strategy-making and the advantages of each.

Understand the concept of synergy in business strategy and its effects.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

MC Curve

The Marginal Cost (MC) Curve is a graphical representation showing how the cost to produce one additional unit of a good changes as production volume increases.

Profit-Maximizing Firm

A company that aims to achieve the highest possible profit given its production costs and market conditions.

Non-Negative Economic Profit

A situation where a firm's total revenues are equal to or greater than its total costs, indicating no loss.