On What Basis Do Economists Claim That a Resale Price

question 54

Multiple Choice

On what basis do economists claim that a resale price maintenance agreement is NOT anti-competitive

• A)Suppliers cannot exercise noncompetitive market power.
• B)If a supplier has market power, it will be likely to exert that power through wholesale price rather than retail price.
• C)Retail markets are inherently noncompetitive.
• D)Retail cartel agreements cannot increase retail profits.

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Definitions:

Restrictive Government Regulation

Government policies and regulations that limit or constrain certain actions, processes, or decisions of individuals or organizations.

Long-run Profits

Profits achieved over an extended period, indicating sustained financial health and success of a business.

Sustainable Development

Progress that satisfies today's requirements without hindering future generations' capacity to address their needs.

Major Organization

A large and influential company or institution that plays a significant role in its industry or sector.