In relation to bargaining power with Buyers. Explain each point: -They purchase a substantial portion of an industry's total output. -Sales of the product they purchase represent a significant portion of the seller's annual revenue. -They could opt for another product paying little or no switching cost. -The industry's products are not differentiated or are standardized and the buyers pose a credible threat in the event that they integrate backward into the industry of the sellers.
In relation to bargaining power with Buyers. Explain each point: -They purchase a substantial portion of an industry's total output. -Sales of the product they purchase represent a significant portion of the seller's annual revenue. -They could opt for another product paying little or no switching cost. -The industry's products are not differentiated or are standardized and the buyers pose a credible threat in the event that they integrate backward into the industry of the sellers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In relation to bargaining power with Buyers.
Explain each point:
-They purchase a substantial portion of an industry's total output.
-Sales of the product they purchase represent a significant portion of the seller's annual revenue.
-They could opt for another product paying little or no switching cost.
-The industry's products are not differentiated or are standardized and the buyers pose a credible threat in the event that they integrate backward into the industry of the sellers.
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