Suppliers to an industry have high bargaining power when they
A) produce a component that accounts for a large percentage of the value of the industry's product.
B) are few in number compared to the number of industry participants.
C) can credibly threaten to forward integrate into the industry to which they are selling.
D) Suppliers have high bargaining power under all of the above conditions.

Question

Quizplus · Accepted Answer

Suppliers have high bargaining power when they produce a critical component, are few compared to industry participants, and can threaten to forward integrate, as all these factors limit the industry's ability to negotiate favorable terms.

Suppliers to an Industry Have High Bargaining Power When They