​Vertical contracts between manufacturers and retailers often aim to

A) ​Incentivize the retailers to undertake costly activities,which they otherwise may not realize the full benefits of on their own
B) Serve as a "signal" of the manufacturer's belief of the likely success of his product
C) Reimburse the retailer for the cost of managing an extended inventory
D) ​All of the above

Vertical Contracts

Agreements between firms at different levels of the supply chain, such as between a manufacturer and a retailer.

Costly Activities

Actions or tasks that require significant expenditure of resources, such as time, money, or effort.

Extended Inventory

An expanded list of goods and materials kept on hand by a business, including raw materials, work-in-progress, and finished goods.