In which of the following situations would a business's profits be most threatened by the bargaining power of customers?
A)There are many customers, who each makes individual purchase decisions for small purchases.
B)There are many customers, but they are affiliated into several groups. Each group decides which seller to buy from.
C)There are only a few customers, but each buys a large volume.
D)There is only one customer, who represents the entire market demand.

Question

Quizplus · Accepted Answer

The bargaining power of customers is highest when there is only one customer, who represents the entire market demand, as this customer has significant leverage over the business in terms of pricing and terms of sale.

In Which of the Following Situations Would a Business's Profits