Ceramic Customs Corp.required a specific type of ceramic to make its tiles.Since there was only one supplier for that particular ceramic,the firm was forced to source all of its supplies from it.The firm tried negotiating the price of the material but failed to get any reduction on the cost.This was because:

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The fact that the firm failed to negotiate a reduction in the cost of the ceramic material suggests that the supplier had more bargaining power than the firm, which is why it was not willing to reduce the price. This is a classic example of a situation where the supplier has a significant amount of bargaining power due to the lack of alternatives for the firm.