Which of the following strategies would allow a seller to develop unique cost advantages to create a barrier to new sellers entering its market?
A)Gain market power as a buyer in a critical input market.
B)Convince the government to require licenses to enter the market.
C)Add switching costs to lock in customers.
D)Use brand proliferation to cover all market niches.

Question

Quizplus · Accepted Answer

By gaining market power as a buyer in a critical input market, a seller can negotiate lower input costs, creating a cost advantage that new entrants may find difficult to match, thus serving as a barrier to entry.

Which of the Following Strategies Would Allow a Seller to Develop