How does a producer of complementary products maximize its relative bargaining power?
A)It adopts a differentiation strategy that allows it to sell at a premium price
B)It adopts a cost strategy to provide its product at the lowest possible cost and so exploit economies of scale
C)It reduces the value contributed by the other producers through corporate PR, advertising and other communication media
D)It creates a differentiated market for its product and a commodity market for the complementary good

Question

Quizplus · Accepted Answer

By creating a differentiated market for its product and a commodity market for the complementary good, the producer can increase its bargaining power by making its product more essential and unique, while making the complementary product more interchangeable and less valuable.

How Does a Producer of Complementary Products Maximize Its Relative