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Buyers might just communicate better with certain firms; Lower prices; better product knowledge; co-op advertising; better product reputation. I might prefer to sell GE rathe tan Yugo or something. Better warranty Cumulative discounts Cumulative awards like trips for the boss. Geographic convenience Maybe even billing convenience, like suppose a supplier closed their books on the 15th of the month. I might prefer that because I have to pay rent and stuff on the first.

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Why do large firms buy parts and assemblies from smaller firms?

Large firms often buy parts and assemblies from smaller firms to leverage specialized expertise and innovative capabilities that smaller firms can provide. This approach allows large companies to reduce production costs, increase efficiency, and focus on their core competencies. Additionally, outsourcing to smaller suppliers can foster flexibility and adaptability in response to market changes, while also promoting collaboration and knowledge sharing between businesses. Ultimately, this strategy can enhance overall product quality and accelerate time-to-market.


What is the environment of business firms?

These include customers,competitors, suppliers, government, and the social, political, legal and technological factors etc.


What does RATNEST mean in economics?

Resource prices, Alternative prices, Technology improvements, Number of sellers/firms, Expectations of suppliers/producers, Subsidies, Taxes


How do economists measure the degree of competition in a market?

_Amount of control a firm or a group of firms have over the total market supply _The amount of influence a firm or group of firms have over market price _The freedom new suppliers have to enter the market


How does collusion improve the financial standing of firms?

Collusion can improve the financial standing of firms by allowing them to work together to manipulate prices, reduce competition, and increase profits. This can lead to higher revenues and market power for the colluding firms, ultimately boosting their financial performance.

Related Questions

Why suppliers need accounting information?

to make sure firms able to pay for its purchases


Why do the firms or suppliers of a good in such markets face a perfectly elastic demand curve?

The price


What are the major elements of specific environment and how each elements impacts firms?

CUSTOMERS SUPPLIERS regulators competitors


What has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices?

The internet


A flowchart to Accept three numbers and check whether it firms to Pythagorean triplet?

Accept 3 natural numbers and check whether it firms pythagorean triplet


What is the environment of business firms?

These include customers,competitors, suppliers, government, and the social, political, legal and technological factors etc.


What does RATNEST mean in economics?

Resource prices, Alternative prices, Technology improvements, Number of sellers/firms, Expectations of suppliers/producers, Subsidies, Taxes


What can energy suppliers do to reduce our carbon footprint?

Energy suppliers can increase their search and support for alternative forms of energy. They can also encourage their customers to be more conservative in their use of energy.


How do economists measure the degree of competition in a market?

_Amount of control a firm or a group of firms have over the total market supply _The amount of influence a firm or group of firms have over market price _The freedom new suppliers have to enter the market


How do you reduce the steps for sum of n numbers?

You don't have to reduce the steps.


How do you write a letter for asking price reduction from suppliers due to raw material reduction?

price reduce letter


How does collusion improve the financial standing of firms?

Collusion can improve the financial standing of firms by allowing them to work together to manipulate prices, reduce competition, and increase profits. This can lead to higher revenues and market power for the colluding firms, ultimately boosting their financial performance.