​Vertical relationships can increase profits through

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

Double-Markup Problem

A situation in vertical supply chains wherein two or more successive stages (like wholesalers and retailers) mark up the prices of goods, potentially leading to excessively high retail prices.

Vertical Relationships

The interactions and connections between different levels of a supply chain, such as manufacturers and distributors.

Profits

The financial gain obtained when the total revenue generated from business activities exceeds the total costs and expenses incurred.