Author Question: Government can intervene in the market through a. Price floors b. Price ceilings c. Taxes d. All ... (Read 96 times)

APUS57 · **on:** Jul 1, 2018

Government can intervene in the market through
a. Price floors
b. Price ceilings
c. Taxes
d. All the above

Question 2

Buyer Power Nora's Nicest Knick Knacks has sold a variety of products to hundreds of small retailers. Over time, she has added distributers who have a talent for finding more retailers for Nora. Now, over half of her sales go through just two of these distributers. Rather than making periodic orders as stock gets low, these distributers make only a few large purchases each year. How can these aspects of her buyer relationships affect how much of the value she creates that she gets to capture?

bulacsom · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

d

Answer to Question 2

Nora's sales are increasingly being concentrated to a few large buyers and into a few large orders. These buyers have increasing more leverage to demand better terms. Nora can no longer afford to not come to terms and lose these distributers as customers. This means she will tend to capture less of the value her firm creates.