XYZ Manufactures Computer Hardware

question 130

Multiple Choice

XYZ manufactures computer hardware.The marketing executives,in order to increase the market share,forced a business to accept a suggested retail price and not to sell the items below the stated price.

• A)This practice violates the Sherman Antitrust Act.
• B)There is no violation.According to a recent Supreme Court decision,this is fine.
• C)This practice violates the Fair Price Protection Act.
• D)As long as the manufacturer offer rebates,they can do whatever they want.

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Definitions:

Slope

A measure of the steepness or inclination of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Vertical Axis

In graphing, the y-axis that typically represents the variable being measured or dependent variables.

Marginal Changes

Small, incremental adjustments to an existing plan of action, often considered in decision making and economic analysis.

Other-things-equal Assumptions

A principle in economics which suggests that the effect of one economic variable on another can be determined by holding all other influencing factors constant, commonly referred to as ceteris paribus.