A supplier of an input is unlikely to have bargaining power if

Question

Quizplus · Accepted Answer

When many firms can supply the input, the supplier would not have much bargaining power as the buyer can easily switch to another supplier. Specialized inputs can also give the supplier less bargaining power as the buyer may have few other options, but the question says "unlikely to have bargaining power," so we can eliminate A. If the supplier is the sole supplier of an input, they would have more bargaining power because the buyer has no other option, so we can eliminate C. Having a patent on the input may give the supplier an advantage, but it does not provide a clear indication of bargaining power, so we can eliminate D. Therefore, the best choice is B.

A Supplier of an Input Is Unlikely to Have Bargaining