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:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the cost of the investment.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the central bank or the rate used in discounted cash flow analysis to determine the present value of future cash flows.