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Carbon Automotive Manufactures Engines for Different Cars

Question 38

Multiple Choice

Carbon Automotive manufactures engines for different cars. The company supplies its products to leading car manufacturers in Europe and America. Which of the following statements indicates that Carbon has high bargaining power?


A) Carbon has only four customers and all of them are large companies.
B) Carbon's customers do not expect differentiation in its engines from one vehicle to another.
C) The selling point of many cars is that they contain Carbon engines.
D) The automobile industry in the U.S. is characterized by low levels of competition.

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