Author Question: What is resale price maintenance? Is resale price maintenance legal in the United States? What ... (Read 91 times)

fagboi

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What is resale price maintenance? Is resale price maintenance legal in the United States?
 
  What will be an ideal response?

Question 2

A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it.
 
  Indicate whether the statement is true or false



jessicaduplan

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Answer to Question 1

Resale price maintenance occurs when a manufacturer agrees with a distributor on the price at which the product will be resold. For instance, Sony could arrange with Best Buy the price for which Sony televisions are sold. Resale price maintenance (also called vertical price fixing) agreements are illegal under the Sherman Act. But it isn't illegal for a manufacturer to refuse to supply a retailer who doesn't accept guidance on what the price should be.

Answer to Question 2

FALSE



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