Resale price maintenance can never increase economic efficiency.

Question

Quizplus · Accepted Answer

Resale price maintenance can actually increase economic efficiency in some cases. For example, it can prevent free-riding and ensure that retailers provide adequate services and support for the products they sell. However, it is important to note that resale price maintenance can also potentially lead to reduced competition and higher consumer prices if not properly regulated.

Resale Price Maintenance Can Never Increase Economic Efficiency