WHY is this correct? “Absense of supplier concentration keeps input factor costs low” So my understanding of the statement is that less suppliers there are the lower the input costs, that doesn’t make sense to me. ANy help? Cheers
No sorry. The MORE suppliers there are, the more options a buyer has to choose which one. By having that choice, the buyer can exert pressure on the suppliers to reduce prices i.e. factor cost
Ah I see double negative… Thanks