198. Jimmys Stereo Company manufactures stereo equipment. Its business strategy is to provide retail customers with high-quality

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19–8. Jimmy’s Stereo Company manufactures stereo equipment. Its business strategy is to provide retail customers with high-quality equipment, along with good service and warranty protection. It currently distributes its products through licensed dealers who have exclusive territories. Discuss (1) why Jimmy’s might offer its distributors exclusive territories,

(2) the potential problems that this policy might create in terms of retail pricing, and

(3) potential policies that Jimmy’s might use to address this pricing problem.

19–9. BQT Manufacturing produces electric lamps. To produce these lamps, BQT must either make or acquire bases for the lamps. Currently, the company outsources the production ?

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Managerial Economics And Organizational Architecture

ISBN: 9781260571219

7th International Edition

Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley

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