Ceramic Customs Co.requires a specific type of ceramic to make custom-made tiles.Since only one supplier makes that particular ceramic,the firm is forced to source all of its supplies from it.The firm tried negotiating the price at which it purchases the material,but failed to get any reduction on the cost.This is because:

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The fact that Ceramic Customs Co. failed to negotiate a lower price suggests that the supplier has more bargaining power than the firm. This could be due to reasons such as the supplier being the only one who produces the specific ceramic, having a dominant market position, or having high switching costs for the firm to switch to another supplier.