Manufacturers Use Seasonal Discounts To

question 78

Multiple Choice

Manufacturers use seasonal discounts to:

• A)"load up" their dealers.
• B)rid themselves of dated merchandise.
• C)entice dealers to purchase seasonal merchandise earlier in the selling season.
• D)prolong the peak seasonal selling season.

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Definitions:

Market Power

The ability of a company or entity to influence the price and output levels in the market.

Double-Markup Problem

A situation in vertical supply chains wherein two or more successive stages (like wholesalers and retailers) mark up the prices of goods, potentially leading to excessively high retail prices.

Vertical Relationships

The interactions and connections between different levels of a supply chain, such as manufacturers and distributors.

Profits

The financial gain obtained when the total revenue generated from business activities exceeds the total costs and expenses incurred.