In a market with few large buyers,prices are usually lower than in markets with many small buyers.

Question

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In a market with few large buyers, the suppliers have fewer customers to sell to and hence, compete more fiercely to secure contracts with these large buyers. This results in lower prices as the suppliers may be willing to accept lower margins in order to secure these contracts. In contrast, markets with many small buyers may have more competition among the buyers themselves, which can drive up prices.

In a Market with Few Large Buyers,prices Are Usually Lower