Marta wants to open a shop specializing in gourmet candies and is having a difficult time finding space to rent in a location where many potential customers will pass by each day. There are only two possible locations that meet Marta's criteria, and several other types of businesses are vying to rent each location. This leads to high rents. What challenge to profitability is Marta facing as she starts her business?
A)the threat of potential entrants
B)the threat of competition from existing competitors
C)suppliers with bargaining power
D)customers with bargaining power

Question

Quizplus · Accepted Answer

Marta is facing high rents due to limited available spaces and competition for those spaces, which indicates that landlords (suppliers of rental space) have significant bargaining power.

Marta Wants to Open a Shop Specializing in Gourmet Candies