Final answer:
A firm can exercise greater control over its suppliers by having a single supplier, which can create a monopoly-like situation with substantial market power and influence on pricing and profits, influenced by the price elasticity of demand.
Step-by-step explanation:
A firm can exercise greater control over its suppliers in terms of price, quality, and delivery schedules by having a single supplier. This approach can lead to a monopoly-like situation where the firm controls a significant portion of the supply of a good or service. Monopoly firms have considerable market power, which can lead to unintended consequences. The question of whether new technologies will lead to larger or smaller firms is still debated, but it's clear that control over key inputs, like a coffee shop controlling its coffee supply, can impact a firm's pricing strategies and profits, with the price elasticity of demand being critical in this dynamic.