It can be inferred from the passage that some channel flow diversion might be eliminated if

Mikhail1710 on August 25 at 03:51AM

Hi, why is the answer: manufacturers charged all authorized distributors the same unit price for products regardless of quantity purchased?

Hi, why is the answer: manufacturers charged all authorized distributors the same unit price for products regardless of quantity purchased?

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Mikhail1710 on August 25 at 03:51AM

Why not: manufacturers refused to provide the "extended product" to consumers who purchase goods in the gray market?

Emil-Kunkin on August 25 at 08:18PM

Around line 10 the passage tells us that a major factor contributing to channel flow diversion is that manufacturers offer quantity discounts that encourage reseller to sell on the grey market. Thus, eliminating this quality discounts should cut diversion.

The passage tells us in the third paragraph that manufacturers actually don't offer extended product to customers who purchase in the grey market.