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When a manufacturer goes through an intermediary, there's a markup in order to make a profit. When the manufacturer gives the retailer the product, there's
When a manufacturer goes through an intermediary, there's a markup in order to make a profit. When the manufacturer gives the retailer the product, there's a second markup when the retailer sells the product to the consumer. To recover these markup costs, consumer prices go up The price may become so high that demand drops, and both the manufacturer and retailer lose out. This problem is called
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