Answer to Question #269438 in Microeconomics for Marty

Question

Digicel Threats of suppliers taking over the firm market

Answer 1

Suppliers tend to raise expenses while customers lower the sales price. This is due to their constant desire to increase the earnings generated by their products (Porter, 2008). This has been a problem for Digicel in practically all of its markets. It has, however, maintained supplier loyalty through timely payments, making it a trustworthy partner. This trust has aided in the reduction of supplier costs.