Existence of Gray Markets Lead to Which of the Following

Multiple Choice

Existence of gray markets lead to which of the following outcomes?

A) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive.
B) They make the distribution channel stronger.
C) Goods sold in grey markets are always counterfeit.
D) Goods sold in grey markets come with standard product warranties.
E) Taxes imposed on grey market products are very high.