Author Question: The federal courts are increasingly willing to tolerate resale price maintenance agreements between ... (Read 49 times)

mrsjacobs44 · **on:** Jun 29, 2018

The federal courts are increasingly willing to tolerate resale price maintenance agreements between manufacturers and retailers

A) when they are necessary to prevent predatory pricing.
B) when they enable small businesses to survive more profitably.
C) when they provide retailers with incentive to supply customer services desired by manufacturers.
D) whenever both parties voluntarily agree on them.
E) whenever they are necessary to cover sunk costs.

Question 2

Refer to the scenario above. If both the firms are optimizing, which of the following statements is true?

A) Firm B will produce more than Firm A.
B) Firm A will produce more than Firm B.
C) Both firms will produce the same quantity.
D) The quantity produced by both firms will depend on the demand for pens and not the marginal costs.