A Manufacturer Is LEAST Likely to Impose Vertical Restrictions When

question 15

Multiple Choice

A manufacturer is LEAST likely to impose vertical restrictions when ________.

• A) distributors have better market information than the manufacturer
• B) distributor violations of restrictions are relatively easy to detect
• C) distributors invest heavily in manufacturer-specific assets
• D) competition at the manufacturer level is insignificant
• E) the manufacturer is concerned about free riding

---

Definitions:

Dominant Industry

An industry that holds a commanding position within an economy, often driving economic growth, attracting a significant portion of investments, and influencing labor markets.

Johnstown

A city in Pennsylvania, USA, historically known for the Johnstown Flood of 1889, one of the deadliest disasters in American history.

Winston-Salem

A city in North Carolina, USA, known for its historical tobacco industry and cultural sites.

Suburbs

Residential areas located on the outskirts of cities or large towns, typically characterized by lower population density and more single-family homes than urban centers.