Vertical Relationships Can Increase Profits Through

question 23

Multiple Choice

Vertical relationships can increase profits through

• A) providing a mechanism for firms from evading regulation
• B) creating a double-markup problem
• C) making the incentives of manufacturers and retailers unaligned
• D) preventing price discrimination

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Definitions:

Industrial Capitalism

An economic system characterized by private or corporate ownership of capital goods, production for profit, and the predominance of industrial manufacturing and services.

Government Contracts

Agreements made between a private company and the government to provide goods or services.

Mechanization

The process of using machinery and technology to perform tasks that were previously done manually.

Slave-Owning Indians

Indigenous peoples in the Americas who owned slaves, a practice influenced by European colonization.