Two Sources of Horizontal Conflict Are Common

question 280

Multiple Choice

Two sources of horizontal conflict are common. It may occur when __________.

• A)a manufacturer increases its distribution coverage in a geographical area
• B)disagreements arise over how profit margins are distributed among channel members
• C)manufacturers believe wholesalers or retailers are not giving their products adequate attention
• D)a channel member bypasses another member and sells or buys products direct
• E)dual distribution causes conflict when similar types of retailers carry different brands

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Definitions:

Producer Surplus

The discrepancy between the amount sellers are prepared to take for a product or service and the actual payment they get.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a good or service.