Yellow Corp., a supplier that provides raw materials to a leading computer brand, had to lower its costs by 7 percent as the computer brand doubled its order.As a result, Yellow Corp.experienced economies of scale.This negotiation tactic is an example of _____.

Question

Quizplus · Accepted Answer

The negotiation tactic utilized by the computer brand is purchasing volume as they increased their order, which enabled Yellow Corp. to experience economies of scale and therefore lower their costs.