Lightning Cycles, Inc

question 57

Multiple Choice

Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations. Lightning imposes restrictions on Macho to limit the areas in which they sell the bikes and insulate other dealers from direct competition. This is

• A) a territorial restriction.
• B) a resale price maintenance agreement.
• C) a refusal to deal.
• D) a price-fixing agreement.

Understand how changes in supply and demand affect market equilibrium.

Recognize how government interventions, like subsidies and price controls, influence market outcomes.

Identify the factors leading to shifts in supply and demand curves.

Describe the consequences of price ceilings and floors on market equilibrium and stakeholders.

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Definitions:

Effective Management

Practices and techniques that lead to achieving desired results through efficient use of resources and team coordination.

Bullwhip Effect

A phenomenon where inaccurate or distorted information in a supply chain causes overreaction and variability in orders, often leading to inefficiency and excess inventory.

Weighted Total

A calculated total in which different components are given different levels of importance or weight, often used in assessments or decision-making processes.

Lot Size

Refers to the set quantity of items that are processed, ordered, or produced together at a time.