Many Economists Argue That Resale Price Maintenance

question 12

Multiple Choice

Many economists argue that resale price maintenance

• A) has a legitimate purpose of stopping discount retailers from free riding on the services provided by full service retailers.
• B) is price fixing and, therefore, is prohibited by law.
• C) is price fixing and, therefore, is prohibited by law and enhances the market power of the producer.
• D) enhances the market power of the producer.