The bargaining power of the buyers and sellers

Question

Quizplus · Accepted Answer

The bargaining power of buyers and sellers determines the distribution of value created by the product or service. If buyers have more power, they can demand lower prices and better terms, reducing the profit potential for the seller. If sellers have more power, they can charge higher prices and retain more of the value created. This power dynamic can impact the profitability of the industry and individual companies within it.

The Bargaining Power of the Buyers and Sellers