​Vertical contracts between manufacturers and retailers often aim to

A) ​Incentivize the retailers to undertake costly activities,which they otherwise may not realize the full benefits of on their own
B) Reward the retailer for undertaking the risk inherent in introducing a new product
C) Serve as a "signal" of the manufacturer's belief of the likely success of his product
D) ​All of the above

Vertical Contracts

Agreements between companies at different levels of the supply chain, such as manufacturers and retailers, aimed at controlling prices or excluding competitors.

Costly Activities

Activities that involve a significant expenditure of resources such as time, money, or effort.

New Product

An item or service that has been recently developed or introduced to the market, offering new or improved features.