Buyers have higher market power when firms sell a highly differentiated product.

a. they are not a significant purchasers of the supplier's output.

b. their switching costs are low.

c. they are less concentrated.

The correct answer is letter "C": their switching costs are low.

Explanation:

Consumers incur switching costs if they are penalized by direct or indirect costs for changing a manufacturer, brand or commodity. Switching costs are typically monetary but can also reflect the time and effort required to make a change. A major barrier to market improvements can be high switching costs.

Thus, if there are no switching costs consumers will have more buying power since they will freely decide what to spend their money without the constraints of penalties.

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability