Existence of Gray Markets Lead to Which of the Following

question 27

Multiple Choice

Existence of gray markets lead to which of the following outcomes?

• A) They make the distribution channel stronger.
• B) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive.
• C) Goods sold in grey markets are always counterfeit.
• D) Goods sold in grey markets come with standard product warranties.
• E) Taxes imposed on grey market products are very high.