​Vertical Relationships Can Increase Profits Through

question 54

Multiple Choice

​Vertical relationships can increase profits through

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

---

Definitions:

Authorized Act

An action taken by an individual or entity that is legally permitted under the law or by a governing body.

Principal

In a legal context, the main party who authorizes another (the agent) to act on their behalf in transactions or other legal matters.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.

Contract Remedies

Legal solutions provided in case of a breach of contract, including compensation, specific performance, and rescission, designed to address or correct the breach.