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      Question

      A supplier gains power when the product

      is:
      A critical to the buyer, and switching costs are high. Correct Answer Incorrect Answer
      B relatively unimportant to the seller, and switching costs are low Correct Answer Incorrect Answer
      C relatively unimportant to the seller, and switching costs are high Correct Answer Incorrect Answer
      D critical to the buyer, and switching costs are low. Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      A supplier gains power when the product is critical to the buyer and when it has built up the switching costs.

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