A Certain Marble Quarry Provides a Unique Type of Marble

question 106

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 the 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.

---

Definitions:

Saving And Investment

The act of foregoing current consumption to put resources into assets or projects expected to generate future benefits or returns.

Loanable Funds

A term used in economics to describe the market where savers supply funds to borrowers, typically characterized by the interest rate.

Saving

The act of setting aside a portion of current income for future use, which could involve depositing money into bank accounts or investing in financial products.

Investment

Assigning funds with the anticipation of creating income or achieving financial gain.