Final answer:
It is true that operations managers focus more on price negotiation with suppliers to remain competitive due to globalization and advances in technology that have increased market competition. Effective price negotiation can lower input costs and sustain profitability. The idea that no buyer would pay more than the equilibrium price is false, as market conditions can lead to higher prices.
Step-by-step explanation:
The statement that operations managers now devote more energy to price negotiation with their suppliers as a means of staying competitive is true. The forces of globalization and advancements in communications and information technology have intensified the level of competition across various markets. Firms must grapple with competition not only from local businesses but from companies around the world. To maintain or improve their competitive edge, businesses often need to find ways to reduce costs and enhance efficiency.
Price negotiation is a critical component of supply chain management, which can directly impact a company's bottom line. By negotiating better terms with suppliers, firms can reduce their input costs, which can lead to lower prices for their customers, better profit margins, or both. On the other hand, competition from companies offering better or cheaper products can lead to reduced profits or even drive a company out of business. Hence, effective price negotiation is a strategic necessity in today's globalized market environment.
To address the statement, "In the goods market, no buyer would be willing to pay more than the equilibrium price," this is false because certain market dynamics, such as the presence of unique goods, brand loyalty, or time-sensitive demand, can lead buyers to pay a premium above the equilibrium price.