Buyers tend to have less power when
A) a firm has only one buyer, or a small number of buyers.
B) the products or services being sold to buyers are standard and not differentiated.
C) the supplies they purchase are an insignificant portion of the costs of their final products.
D) they are not earning significant economic profits.

Question

Quizplus · Accepted Answer

When the supplies purchased are an insignificant portion of the costs of their final products, buyers have less leverage to negotiate prices or terms, reducing their power.

Buyers Tend to Have Less Power When