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this is for pricing not finance 2. In a channel, a manufacturer sells its products to a retailer at wholesale price w, and then the

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this is for pricing not finance
2. In a channel, a manufacturer sells its products to a retailer at wholesale price w, and then the retailer sells them to consumers at retail price p. Channel profit is defined as the profit received by the manufacturer plus the profit received by the retailer. The manufacturer and the retailer do not work as a team. This uncoordinated channel structure generally leads to what we call a double marginalization problem. Which of the following statement about the problem with double marginalization is false A. The retail price p is too high B. The channel profit is too high C. The consumer demand is too low D. The manufacturer and the retailer are maximizing different profits 3. Which of the following statement regarding the role of the intermediary in a channel is not correct? A. Uber, like eBay, significantly decreases the number of connections between buyers and sellers needed to establish a market B. The existence of an intermediary independent of the sellers can lead to double marginalization C. Profit sharing between Uber and its drivers can alleviate the double marginalization problem D. All of the above are correct. 4. Costco charges a membership fee for its customers and it does not have a large number of retail centers (as compared to a drugstore like CVS). From the perspective of 2-part tariff, such a pricing structure encourages: A. Affluent high income shoppers B. Large quantity purchases C. Customers who care more about product quality D. Frequent purchases T

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