​Vertical relationships can increase profits through

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

Vertical Relationships

Vertical relationships refer to the connections between companies or entities at different stages of the production process, such as suppliers, manufacturers, and retailers.

Double-Markup Problem

Refers to the inflation of prices that occurs when each intermediary in a supply chain adds its own markup.

Incentives

Rewards or motivations offered to encourage specific behaviors or actions by individuals or organizations.