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Which of the following events would increase the number of suppliers in a particular market?
Suggested Answer: C
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The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.
LO 3, AC 3.1
37 comments · newest first
LI
Linwood
11 months ago
I thought high investment would limit new entrants, not increase them!
VA
Vanda
11 months ago
Minimum wage might actually scare some suppliers away.
IL
Ilene
12 months ago
Wait, are we sure de-regulation always leads to more suppliers?
WI
Willow
12 months ago
Totally agree, D is the right choice!
LY
Lynelle
1 year ago
De-regulation usually opens up markets to new suppliers.
SE
Serina
1 year ago
I feel like the requirement for large companies would definitely limit suppliers, so I’m leaning towards de-regulation as the right answer.
RO
Rosamond
1 year ago
The minimum wage regulations could complicate things for some suppliers, but I don't see how that would increase their numbers.
MY
My
1 year ago
I remember a practice question about market entry barriers, and I think high investment levels would actually deter new suppliers, not encourage them.
KA
Kanisha
1 year ago
I think de-regulation might increase suppliers since it could lower barriers to entry, but I'm not entirely sure.
RO
Rosamond
1 year ago
I'm a little confused by this question. I'll need to review my notes on market structure and competition to determine the right answer.
BR
Brett
1 year ago
Okay, I've got it! The key is to identify which of these events would make it easier for new suppliers to enter the market. I'm pretty confident I can figure this out.
ST
Stevie
1 year ago
Hmm, I'm a bit unsure about this one. I need to carefully consider how each of these events would impact the barriers to entry and the incentives for new suppliers.
FR
Francisca
1 year ago
This seems like a straightforward economics question. I'll think through the factors that affect the number of suppliers in a market.
EL
Elise
1 year ago
Okay, I think I know the difference. I'll explain my reasoning in the exam response.
FR
France
1 year ago
Hmm, I'm a bit unsure about this one. Assessing security during deployment, ensuring compliance during testing, or developing an approved equipment list - they all seem like reasonable options. I'll have to weigh the pros and cons of each.
SH
Shaun
2 years ago
Haha, Noah, you had me worried there for a second! At least you're keeping us on our toes.
NO
Noah
2 years ago
Hold up, does the question say 'increase the number of suppliers'? I was thinking it said 'decrease the number of suppliers'. Oops, my bad!
CL
Clarinda
1 year ago
D) De-regulation of a previously government-run industry
AS
Ashton
1 year ago
B) High and increasing levels of investment required to enter the market
KY
Kyoko
1 year ago
A) Introduction of minimum wage regulations
ME
Melina
2 years ago
Hmm, I'm going to have to go with D on this one. The other options just seem like they would have the opposite effect.
OW
Owen
1 year ago
Agreed, it would lower barriers to entry for new suppliers.
FR
Freeman
1 year ago
That makes sense, less regulation would likely attract more suppliers.
CA
Carmela
1 year ago
D) De-regulation of a previously government-run industry
IN
Inocencia
2 years ago
I'm not sure why anyone would think a minimum wage or a requirement for large companies would increase the number of suppliers. That just doesn't make sense.
MO
Mozell
1 year ago
B) High and increasing levels of investment required to enter the market
LA
Lanie
1 year ago
I agree, de-regulation would definitely attract more suppliers.
MA
Matthew
1 year ago
D) De-regulation of a previously government-run industry
VE
Vernell
1 year ago
A) Introduction of minimum wage regulations
MI
Minna
2 years ago
But what about option A, introduction of minimum wage regulations? Wouldn't that also attract more suppliers by ensuring fair wages for workers?
LA
Lashon
2 years ago
I agree with Jesusita. When a previously government-run industry is de-regulated, it allows more companies to enter the market, thus increasing the number of suppliers.
KA
Katina
2 years ago
Option D is clearly the correct answer. De-regulation would encourage more companies to enter the market, thereby increasing the number of suppliers.
TO
Tomas
1 year ago
Competition is always good for consumers, it leads to better prices and choices.
JU
Justine
1 year ago
Exactly, it would create a more competitive market environment.
GE
Gerardo
2 years ago
I agree, de-regulation would remove barriers to entry for new suppliers.
EN
Enola
2 years ago
Option D is clearly the correct answer. De-regulation would encourage more companies to enter the market, thereby increasing the number of suppliers.
JE
Jesusita
2 years ago
I think option D, de-regulation of a previously government-run industry, would increase the number of suppliers.