Some original equipment manufacturers (OEMs) that participate in remanufacturing attempt to limit the cannibalization of new product sales by:

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By establishing floors on the prices that are charged for remanufactured products, OEMs can prevent the price of remanufactured products from undercutting the price of new products and cannibalizing new product sales. This allows for the remanufacturing process to benefit both the OEM and the customer. Option A would deter customers from purchasing remanufactured products altogether, while option B would likely deter customers from purchasing either. Option D would also make remanufactured products less attractive to customers, as they would lack a warranty.

Some Original Equipment Manufacturers (OEMs) That Participate in Remanufacturing Attempt