Suppose a low-price discount store competes with a high-price retail store that provides services to customers. One can view resale price maintenance as a means of
A)preventing the discount store from charging a lower price.
B)preventing the retail store from changing its behavior.
C)preventing the discount store from capturing the best customers.
D)enabling the low-price discount store to sell in the high-price retail store market.
E)eliminating the discount store.

Question

Quizplus · Accepted Answer

Resale price maintenance involves setting a minimum price that retailers must charge for a product. In this scenario, the high-price retail store could use resale price maintenance to prevent the low-price discount store from charging a lower price and potentially stealing customers.

Suppose a Low-Price Discount Store Competes with a High-Price Retail