The strength of bargaining power forces depends on the availability of substitutes and ________ compared to the size of suppliers or customers.

Question

Quizplus · Accepted Answer

The relative size of the firm compared to the size of suppliers or customers is a key factor in determining bargaining power. A larger firm is likely to have more bargaining power as it has more resources and can afford to look for alternative suppliers or customers, while smaller firms may have less bargaining power due to their limited resources. The amount of profit, production capacity, and employee union size are not key factors in determining bargaining power.

The Strength of Bargaining Power Forces Depends on the Availability