Assume That Peach Computers Has Entered into a Resale Price

question 279

Multiple Choice

Assume that Peach Computers has entered into a resale price maintenance agreement with Computer Super Stores Inc.(CSS Inc. ) but not with CompuMart.In this case,

• A) the wholesale price of Peach computers will be different for CSS Inc.than it is for CompuMart.
• B) Peach computers will never increase profits by having a resale price maintenance agreement with all retail outlets that sell its products.
• C) CompuMart will benefit from customers who go to CSS Inc.for information about different computers.
• D) CSS Inc.will sell Peach computers at a lower price than CompuMart.

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