If a supplier has a limited number of buyers, then the ________.
A)threat of substitutes is low
B)network effects are greater
C)buyers have to deal with greater switching costs
D)buyers will have more power

Question

Quizplus · Accepted Answer

If a supplier has a limited number of buyers, the buyers will have more power because they have fewer options and the supplier is more reliant on them. This gives buyers greater bargaining power and leverage to negotiate favorable prices and terms.

If a Supplier Has a Limited Number of Buyers, Then