An industry's buyers have low bargaining power when
A) they have a lot of information about the industry's costs.
B) there are few of them and many incumbents in the industry.
C) the buyers can credibly threaten to make for themselves what they now buy from the industry.
D) each buyer purchases in small volumes from the industry and no one buyer accounts for a large percentage of sales for any industry participant.

Question

Quizplus · Accepted Answer

Buyers have low bargaining power when they purchase in small volumes and no single buyer accounts for a large percentage of sales, reducing their influence over the industry.

An Industry's Buyers Have Low Bargaining Power When