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If a Company Gains Market Power as an Input Buyer

Question 159

Multiple Choice

If a company gains market power as an input buyer, then:


A) the company may be able to purchase inputs at lower prices than other companies who use the same inputs can.
B) the company can set its product price without losing customers.
C) new entry into the industry will be more likely because inputs are available.
D) network effects will result, discouraging new entry into the market.

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