How might manufacturer try inducing the dealer to set price


Problem

An auto manufacturer gives franchised dealers exclusive service territories, and the law allows dealers to set prices as they wish. Why might you expect the dealer and manufacturer to disagree about the price that should be charged? How might a manufacturer try inducing the dealer to set price more in accordance with its wishes?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How might manufacturer try inducing the dealer to set price
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