Imagine you work for the manufacturer of a skateboard company. You’ve created a demand schedule and have done a great deal of pricing research. You’re excited to work with a large distributor and are trying to come up with a manufacturing price to charge them for the skateboards and avoid common problems when selling through channel intermediaries. Which of the following is the ideal strategy to adopt?


Manufacturers often try to resolve the problem of double marginalization by offering quantity discounts.

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