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Assume we have two manufacturers of cheese, Firms X and Y. Firm X is a small firm that produces artisan cheeses that have outstanding flavor
Assume we have two manufacturers of cheese, Firms X and Y. Firm X is a small firm that produces artisan cheeses that have outstanding flavor and quality but require extensive demonstration for sale. Firm Y, in contrast, is a large firm that mass produces basic cheeses sold to a broad consumer audience. Which firm is more likely to rely on minimum resale price maintenance and why? Question 5 options: a) Firm X is more likely to rely on minimum resale price maintenance to incentivize some retailers to provide the sales demonstrations necessary to generate sales. b) Firm Y is more likely to rely on minimum resale price maintenance because it will want to provide both higher priced and lower priced retailers with the same incentive to sell the product. c) Firm X is more likely to rely on minimum resale price maintenance because its smaller size reduces the resources that it can devote to managing relationships with retailers. d) Firm Y is more likely to rely on minimum resale price maintenance because its focus on reaching a massed consumer market makes it essential to maintain quality
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