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A Manufacturer Is LEAST Likely to Impose Vertical Restrictions When

Question 7

Multiple Choice

A manufacturer is LEAST likely to impose vertical restrictions when ________.


A) distributors have better market information than the manufacturer
B) distributor violations of restrictions are relatively easy to detect
C) distributors invest heavily in manufacturer-specific assets
D) competition at the manufacturer level is insignificant
E) the manufacturer is concerned about free riding

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