The bargaining power of buyers increases if
A) the input in question is not a critical component of production.
B) there are wide variations in the quality of inputs from supplier to supplier.
C) there are many large buyers.
D) the input in question has few substitutes.
A
You might also like to view...
The difference between the Baumol-Tobin formulation of the demand for money and the Keynesian-Baumol formulation is that
A) the speculative demand is a function of income. B) the transaction demand is a function of interest rates as well as income. C) the transaction demand is a function of wealth. D) Both B and C are correct.
Value judgments in economics:
A. are essential parts of positive economics. B. can be avoided through the use of normative economics. C. are necessary when objective analysis cannot address a question. D. can always be avoided with the use of objective analysis.
Tom, a math major, examines Jane's economics class notes and observes that when price-taking firms earn economic profit, they do not seem to produce a quantity that minimizes their costs. Is he correct? Is there significance to this observation?
Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies
a. True b. False Indicate whether the statement is true or false