question archive Now assume a manufacturer can use a vertical restriction, such as a quota or a maximum resale price, as a means to avoid double markup
Now assume a manufacturer can use a vertical restriction, such as a quota or a maximum resale price, as a means to avoid double markup
Subject:EconomicsPrice: Bought3
Now assume a manufacturer can use a vertical restriction, such as a quota or a maximum resale price, as a means to avoid double markup. Give an example of an efficient restriction (one that completely minimizes the double markup) that both the manufacturer and retailer would be willing to accept.
