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Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching...

Firms that buy inputs from suppliers have more bargaining power when:

A.

the costs of switching suppliers are low
B.

the suppliers sell highly differentiated products
C.

there are many other buyers in the market
D.

they purchase a relatively small quantity of product

If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become:

A.

retain the same elasticity of demand
B.

more elastic
C.

We do not have enough information to answer this question
D.

more inelastic

Which of the following factor does NOT contribute to higher rivalry in a market?

A.

Low switching costs for buyers
B.

Fast growth in the market
C.

High fixed costs
D.

Large number of competitors

Movie theaters tend to charge higher ticket prices for evening and weekend shows. This implies that the demand for these tickets is relatively:

A.

inelastic
B.

unresponsive to income changes
C.

necessary
D.

elastic
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