Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
A) differentiation among existing suppliers is high.
B) the suppliers' industry is highly fragmented.
C) existing suppliers lack economies of scale.
D) the suppliers' industry is dominated by a few companies.
E) cost advantages independent of size are negligible.

Question

Quizplus · Accepted Answer

When the suppliers' industry is dominated by a few companies, they have more control over prices and terms, making them more powerful relative to the firms they supply.

Suppliers Are More Likely to Be Powerful Relative to the Firms