In Which One of the Following Instances Is Supplier Bargaining

question 66

Multiple Choice

In which one of the following instances is supplier bargaining power and leverage not weakened?

• A)When industry members pose a credible threat of backward integration into the business of suppliers
• B)When sales to a strategic partner constitute a big percentage of their total sales
• C)When the items purchased from suppliers are in short supply
• D)When the buying firms purchase in large quantities and thus are important customers of the suppliers
• E)When the cost of switching from one supplier to another is low

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Definitions:

Economic Theory

A set of principles and models that explains how economies function, including the distribution of resources and the consumption of goods and services.

Public Sector Decision Making

The process by which government bodies or agencies decide on allotment of resources, policy implementations, and other administrative matters for the public good.

Personal Benefits

The advantages or gains that an individual receives from making certain choices or engaging in specific activities.

Rational-Ignorance Effect

A phenomenon where individuals decide not to become informed about a matter because the perceived cost of acquiring the information is greater than the expected benefit.