If certification decreases supply and serves as a barrier to entry, it _______the price and _______market power of the suppliers already in the market.

Question

Quizplus · Accepted Answer

Certification decreases supply by making it harder for new suppliers to enter the market, which typically increases the price of goods or services due to reduced competition. Additionally, it increases the market power of existing suppliers because there are fewer competitors, allowing them to exert more control over prices.

If Certification Decreases Supply and Serves as a Barrier to Entry