Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? A. If many firms can supply an input comma then suppliers are like to have the bargaining power to limit a firm's profits. B. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price. C. If an input is specialized comma then the supplier is likely to have the bargaining power to limit a firm's profits. D. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. E. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output.
Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? A. If many firms can supply an input comma then suppliers are like to have the bargaining power to limit a firm's profits. B. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price. C. If an input is specialized comma then the supplier is likely to have the bargaining power to limit a firm's profits. D. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. E. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Firms must typically purchase inputs from suppliers to produce output.
What effect might suppliers have on an industry?
A.
If many firms can supply an input comma then suppliers are like to have the bargaining power to limit a firm's profits.
B.
If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price.
C.
If an input is specialized comma then the supplier is likely to have the bargaining power to limit a firm's profits.
D.
Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits.
E.
If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output.
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