In a goods market,sellers have a higher bargaining power if ________.

Question

Quizplus · Accepted Answer

When there are just a few firms in the industry, each firm has a larger market share and is able to influence prices, giving them more bargaining power. In contrast, if there are several firms in the industry, each firm has less market power, which reduces their bargaining power. The availability of substitutes (A) may also reduce bargaining power, as consumers can switch to a similar product if the price is too high. The number of buyers in the market (D) is less relevant to the bargaining power of sellers, as it is the sellers who set prices and negotiate with buyers.

In a Goods Market,sellers Have a Higher Bargaining Power If