Q5 PARA COMPLETION

Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices œ make deals œ to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information œ the dealer about the product and the consumer about his true desires.

Solution

The correct option is C As a result, everyone loses in the long run.

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