Ask Question
11 November, 07:57

Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching suppliers are low B. they purchase a relatively small quantity of product C. there are many other buyers in the market D. the suppliers sell highly differentiated products

+1
Answers (1)
  1. 11 November, 11:50
    0
    Correct statement is A

    Explanation:

    Bargaining refers to the process where buyer approximately pays the price of a product which he desires by negotiating with the seller.

    When there is bulk quantity purchased then bargaining power increases, also if there is a very low cost for change in supplier then the buyer will choose the supplier offering least rate.

    If there are many buyers for reasonably less number of suppliers then bargaining power of buyers will be least.

    If the products are different from each other sold by different suppliers then bargaining power cannot be exercised, as each product will be identical to each supplier.

    Thus, the correct option is Statement A
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching suppliers are low B. they purchase a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers