Assume That Apple Computer Has Entered into an Enforceable Resale

question 214

Multiple Choice

Assume that Apple Computer has entered into an enforceable resale price maintenance agreement with Computer Super Stores Inc.(CSS Inc.) and Wal-Mart.Which of the following will always be true?

• A) The wholesale price of Apple computers will be different for CSS Inc. than it is for Wal-Mart.
• B) Wal-Mart will benefit from customers who go to CSS Inc. for information about different computers.
• C) CSS Inc. will sell Apple computers at a lower price than Wal-Mart.
• D) Wal-Mart and CSS Inc. will always sell Apple Computers for exactly the same price.

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Definitions:

Reduce Output

A decision or strategy to decrease the quantity of goods or services produced by a company or economy.

Increase Output

To raise the quantity of goods or services produced within a given time period.

Pure Monopoly

A market structure where a single firm is the sole producer and seller of a product or service, with no close substitutes available.

Profit-Maximizing Outputs

The level of production at which a company can achieve the highest possible profit.