A Certain Marble Quarry Provides a Unique Type of Marble

question 32

Multiple Choice

A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble,and this marble only,for this project. Which of the following statements is most likely to be true?

• A)The cost of the marble will be expensive because of the bargaining power of the supplier.
• B)The cost of the marble will be moderate because of the bargaining power of the buyer.
• C)The cost of the marble will be moderate because of economies of scale.
• D)The cost of the marble will be expensive because of the high strategic stakes involved.

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Definitions:

Lowest Price

The minimum cost at which a product or service is offered in the market.

Soft Drink Market

The industry and marketplace that revolves around the production, distribution, and sale of non-alcoholic, carbonated beverages.

Fizzy Drinks Inc.

A fictional or specific company name, presumably involved in the production or distribution of carbonated beverages.

Price Skimming Strategy

A price skimming strategy involves setting high prices initially and then gradually lowering them to attract more price-sensitive customers.