The Bargaining Leverage of Suppliers Is Greater When

question 50

Multiple Choice

The bargaining leverage of suppliers is greater when

• A)only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
• B)industry members incur low costs in switching their purchases from one supplier to another.
• C)industry members purchase in large quantities and thus are important customers of the suppliers.
• D)it makes good economic sense for industry members to vertically integrate backward.
• E)the supplier industry is composed of a large number of relatively small suppliers.

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