Which of the following is the best example of the bargaining power of suppliers?
A) The customer's flexibility to switch suppliers at any time
B) The ability of a dominant microprocessor manufacturer to set industry standards and charge premium prices
C) The ability to negotiate better terms with a commodity producer after a competitive bidding process
D) The ability of a customer to shop around for suppliers
E) The inability for a customer to terminate a supply contract

Question

Quizplus · Accepted Answer

The ability of a dominant microprocessor manufacturer to set industry standards and charge premium prices is a prime example of suppliers having bargaining power. Due to the importance of their products in the industry, they are able to dictate terms and prices to buyers.

Which of the Following Is the Best Example of the Bargaining