What Is the Main Reason for the Practice of Resale

question 26

Multiple Choice

What is the main reason for the practice of resale price maintenance?

• A)Resale price maintenance is likely to increase demand for the product.
• B)Resale price maintenance is an advertising ploy.
• C)Discounting is perceived as anti-competitive.
• D)Discounting is perceived as detrimental to the market status of the product.

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Definitions:

NAFTA

North American Free Trade Agreement; a treaty among the United States, Canada, and Mexico that eliminated most tariffs and trade barriers.

Free Trade Area

A region where a group of countries has agreed to reduce or eliminate trade barriers among themselves, such as tariffs and import quotas.

United States, Mexico, Canada

Refers to the countries involved in the USMCA trade agreement, which is designed to promote trade, strengthen economic relations, and support mutual economic growth.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.