Asked by Manisha Muthoor on Jun 10, 2024
Verified
An industry with a high concentration of buyers and undifferentiated products is most likely highly competitive.
Concentration of Buyers
Refers to a market situation where a small number of buyers control a large share of the market, potentially affecting pricing and competition.
Undifferentiated Products
Goods or services that are perceived as interchangeable with others in the market, lacking distinct features.
- Comprehend the dynamics of bargaining power between customers and suppliers in a specific sector.
- Comprehend the elements that affect competition and rivalry among industry sectors.
Verified Answer
TV
Tiffany VelasquezJun 13, 2024
Final Answer :
True
Explanation :
When there is high concentration of buyers and undifferentiated products, the buyers have significant bargaining power and can easily switch between different suppliers, leading to intense competition among suppliers to capture market share.
Learning Objectives
- Comprehend the dynamics of bargaining power between customers and suppliers in a specific sector.
- Comprehend the elements that affect competition and rivalry among industry sectors.
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