When a supplier imposes resale price maintenance on its dealers,social gain will increase as long as

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When a supplier imposes resale price maintenance on its dealers, it can lead to social gain if the value consumers receive from the services provided by the dealers outweighs the cost they have to pay. This means that the dealers are providing something valuable to the consumers that justifies the price maintenance. If the supplier charges a competitive price for the product and dealers are allowed to charge consumers less than the recommended retail price, it can further increase social gain. However, the ability of dealers to enter and exit the industry costlessly is not directly related to the impact of resale price maintenance on social gain.

When a Supplier Imposes Resale Price Maintenance on Its Dealers,social