Question

Firms must typically purchase inputs from suppliers to produce output What effect might suppliers have on an industry? O A. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price. OB. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output O C. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. D. If many firms can supply an input, then suppliers are likely to have the bargaining power to limit a firm's profits. O E. If an input is specialized, then the supplier is likely to have the bargaining power to limit a firm's profits.

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Answer 1

Ans - If many firms can supply an input, then suppliers are unlikely to have the bargaining power to limit a​ firm's profits.

Explanation:

As if If many firms can supply an input, then all the suppliers have excess to inputs and no supplier can have the bargaining power to limit a​ firm's profits because firms can buy inputs from where ever they get it for little less price.