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Claim: the manufactures could often make more profit by not holding the promotions.
During such a promotion RETAILERs (not manufacture) tend to accumulate in their warehouses inventory bought at discount, they then sell much of it later at their regular price. If so, a retailer can accumulate all the products it wants during the promotion and need not buy any product at regular prize from the manufacture. Thus, the profit for the manufacture is lower than the profit could have been without the promotion.
This answer choice supports the conclusion of the argument. |
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