Mention an example of each point.Number of buyers vs. suppliers: If the number of buyers is small compared to the number of suppliers, the buyer's power is greater.Dependence of a buyer's purchase on a single supplier: If a buyer can obtain similar products/services from multiple suppliers, the buyer's reliance on a single supplier is reduced. As a result, the buyer's power would be greater.Costs of switching: Switching is costly if there are few alternatives. As a result, the buying power of consumers would be limited.Backward Integration: If a buyer can integrate or merge suppliers, he or she will have more negotiating power with existing suppliers.

The number of buyers and sellers determines the structure of the market.

Answered: Mention an example of each point.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mention an example of each point.

Number of buyers vs. suppliers: If the number of buyers is small compared to the number of suppliers, the buyer's power is greater.
Dependence of a buyer's purchase on a single supplier: If a buyer can obtain similar products/services from multiple suppliers, the buyer's reliance on a single supplier is reduced. As a result, the buyer's power would be greater.
Costs of switching: Switching is costly if there are few alternatives. As a result, the buying power of consumers would be limited.
Backward Integration: If a buyer can integrate or merge suppliers, he or she will have more negotiating power with existing suppliers.

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