Final answer:
Buyer power is indeed higher when suppliers provide undifferentiated or standard products, as buyers can easily switch between suppliers without significant cost, characteristic of a perfectly competitive market. Option a is correct.
Step-by-step explanation:
Buyer power tends to be higher if suppliers provide undifferentiated or standard products. The answer to the question is True.
When suppliers offer identical products, buyers have the leverage to negotiate for lower prices because they can easily switch to another supplier without incurring significant costs.
This scenario is typical in a perfectly competitive market, where there are many sellers and buyers, products are identical, and there is easy entry and exit from the market for the sellers.
In contrast, when products are highly differentiated, suppliers have more power because their products stand out from the competition, and buyers may be willing to pay a premium for those differences.
Thus, markets with high levels of product differentiation, such as those with monopolistic competition, generally lead to lower buyer power.
Hence, option a is correct.