ABC Company supplies milk to retail customers in the U.S. There are many sellers offering milk and price is a major determinant of market success. Which of the following predictions about ABC Company is most likely to be true?

Question

Quizplus · Accepted Answer

Since there are many sellers offering milk and price is a major determinant of market success, ABC Company is likely to face powerful buyers who have the ability to negotiate and drive prices down. Therefore, option C is the most likely prediction. Option A and D are unlikely since ABC Company is a milk supplier and not a milk producer or distributor. Option B is also unlikely since ABC Company is likely to compete on price with other sellers and not dictate terms to buyers.

ABC Company Supplies Milk to Retail Customers in the U