The bargaining power of suppliers increases as:

• A. the number of suppliers decreases
• B. buyers have more information about the market
• C. the availability of substitute inputs increases
• D. suppliers face high switching costs

Answer: (A)

Verified step by step guidance

1. Understand the concept of bargaining power of suppliers: It refers to the ability of suppliers to influence the terms and conditions of supply, including price, quality, and delivery.
2. Analyze how the number of suppliers affects bargaining power: When the number of suppliers decreases, each supplier becomes more important to buyers, increasing their bargaining power.
3. Consider the effect of buyers having more information: More informed buyers can negotiate better deals, which typically reduces suppliers' bargaining power.
4. Evaluate the impact of substitute inputs: If there are many substitute inputs available, buyers can switch easily, reducing suppliers' bargaining power.
5. Assess the role of switching costs for suppliers: High switching costs for suppliers make it harder for them to change buyers, which generally decreases their bargaining power.