In a monopoly market, which of the following statements is true?
A.
bargaining power of suppliers is strong
B.
bargaining power of buyers is strong
C.
There is strong rivalry
D.
There is a threat of new entrants
The Answer Is:
A
This question includes an explanation.
Explanation:
Explanation
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
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