Resale price maintenance:
A) is used primarily for commodities for which a product differentiation strategy is ineffective.
B) allows the middlemen to share operating costs with the producer.
C) only works with consumer goods that are classified as specialty items.
D) occurs when the producer uses disintermediation.
E) is accurately described by none of the above.

Question

Quizplus · Accepted Answer

Resale price maintenance does not specifically relate to commodities where product differentiation is ineffective, nor does it involve middlemen sharing operating costs with the producer. It is not limited to specialty items, and it does not involve disintermediation. Resale price maintenance is a practice where the manufacturer sets the price at which a retailer can sell its product, which doesn't necessarily fit any of the scenarios described in options A through D.

Resale Price Maintenance