Channel margins:
A) Are monopolistically determined
B) Are tightly regulated by the FTC
C) Are typically expressed as a string of percentages
D) Are set by the Robinson Patman Act
E) Must be the same for all channel members

Question

Quizplus · Accepted Answer

Channel margins are typically expressed as a string of percentages which reflect the markup added to the cost of goods by each intermediary in the distribution chain. It is not monopolistically determined or set by the Robinson Patman Act, and there is no requirement for channel margins to be the same for all channel members. While the FTC may regulate some aspects of channel pricing, it does not regulate channel margins specifically.

Channel Margins