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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 because its smaller size reduces the resources that it can devote to managing relationships with retailers. b) 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. c) 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. d) 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
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