Question

Not all buyers of an industry's product have equal degrees of bargaining power with sellers, because

Answer 1

Answer:

some sellers may be less sensitive than others to price, quality, or service differences.

Explanation:

Bargaining power is defined as the ability of a buyer to demand for better quality product, better service, or lower prices for goods.

Buyer bargaining power is higher in markets where products are undifferentiated from one another. So no single buyer has ability to determine price and quantity because buyer has other choices.

However where products are differentiated buyers have less bargaining power. This is because they may have no choice when a particular firm produces what they want.

Differentiated markets leads to some sellers having less sensitivelity than others to price, quality, or service differences.

Answer 2

Answer:

There are several reasons why this can happen and they depend on whether the market is a sellers' or buyers' market. A sellers' market is generally one where the number of buyers is very large and they tend to make small transactions. On the other hand, sellers are less sensitive to price or product differentiation because demand is higher than the supply. This results in a shortage of goods which in turn gives the sellers higher pricing power.