Asked by Avelina Milam on Jul 09, 2024

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​You are a restaurant owner buying vegetables from a local farmer.You recently found out that another one of the farmer's clients,a competing restaurant has shut down,what would that do to your bargaining power?

A) ​Increase your bargaining power
B) Decrease your bargaining power
C) Not affect your bargaining power
D) ​None of the above

Bargaining Power

The relative capacity of one party in a negotiation to influence the terms of an agreement.

Competing Restaurant

An eatery that operates in the same market segment and targets a similar customer base as another restaurant, thus being in direct competition.

Local Farmer

A farmer who cultivates land within a community, often focusing on selling produce directly to local consumers or markets.

  • Realize the impact of market conditions and competition on bargaining scenarios.
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KK
Karrlana KinderJul 15, 2024
Final Answer :
A
Explanation :
With the competitor restaurant shutting down, the local farmer may be left with excess produce that they need to sell quickly. This puts the restaurant owner in a position to negotiate a better price or receive better quality produce from the farmer. The farmer may also be more willing to work with the remaining restaurant as they are a reliable source of income. Therefore, the restaurant owner's bargaining power is likely to increase.