Question: Because it holds a patent for a technology that increases an automobile's reliability, the company Magna has 8 0 % of the 'market for a

Because it holds a patent for a technology that increases an automobile's reliability, the company Magna has

80 %

of the 'market for a specialized component. Auto manufacturers pay a high premium for this component. As a result, the auto manufacturers like Toyota or Ford realize:

reduced profit margins due to the intensity of competitors.

increased profit margins due to the bargaining power of the buyer.

increased profit margins due to minimal d

.

reduced profit margins due to the bargaining power of their supplier.

Because it holds a patent for a technology that increases an

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