Suppose Peach Computers has entered into a resale price maintenance agreement with Computer Super Stores Inc.(CSS Inc.) but not with CompuMart.In this case:
A)CompuMart will benefit from customers who go to CSS Inc.for information about different computers.
B)CSS Inc.will sell Peach computers at a lower price than CompuMart.
C)the wholesale price of Peach computers will be different for CSS Inc.than it is for CompuMart
D)Peach computers will never increase profits by having a resale price maintenance agreement with all retail outlets that sell its products.

Question

Quizplus · Accepted Answer

Since Peach Computers has only entered into a resale price maintenance agreement with CSS Inc., CompuMart will not be bound by any pricing rules set by Peach Computers. This will give CompuMart the freedom to set their own prices, which may attract customers who are looking for different pricing options. Therefore, CompuMart will benefit from customers who go to CSS Inc. for information about different computers.

Suppose Peach Computers Has Entered into a Resale Price Maintenance