Asked by Frank Carlos on Sep 24, 2024
Verified
Vertical contracts generally run ______the goals of the customers
A) Indifferent to
B) In line with
C) Contrary to
D) None of the above
Vertical Contracts
Agreements between firms at different levels in the supply chain, such as manufacturers and retailers, to govern the terms of their relationship.
Customers' Goals
The specific objectives or desired outcomes that consumers aim to achieve through the purchase or use of products and services.
- Examine the effects of vertical and horizontal agreements on market behavior and price settings.
Verified Answer
MW
Maiia White1 day ago
Final Answer :
B
Explanation :
Vertical contracts are agreements between a manufacturer (or producer) and a distributor (or retailer) that dictate how their products will be sold and distributed. These contracts are usually designed to benefit both parties, but they are also often used to maximize profits for the manufacturer or producer. Therefore, they are usually in line with the goals of the customers, as it is in the interest of the manufacturer or producer to ensure that their products are sold in a way that satisfies customers and generates revenue for both parties.
Learning Objectives
- Examine the effects of vertical and horizontal agreements on market behavior and price settings.
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