ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
In which of the following situations would the supplier have the greatest power to hurt a business that is its customer?
a: The business could use an alternative input mix that uses significantly less of the supplier's product.
b: The supplier rents building space to a bakery in a real estate market with a vacancy rate of less than .5%.
c: The cost for the business to switch to a different supplier is low.
d: The supplier is one of 100 companies selling the input needed by the business
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