Many manufacturers feel that vertical price fixing should be legal since it protects ________.
A) large chain organizations
B) final consumers seeking lower prices
C) manufacturers seeking large promotional budgets for innovative products
D) a brand's image that may be hurt from repeated price cutting by retailers

Question

Quizplus · Accepted Answer

Vertical price fixing is when manufacturers set a minimum price that retailers must sell their products for in order to maintain a brand's image and prevent repeated price cutting by retailers. This can protect the brand's image and prevent it from being associated with being low-quality or cheap.

Many Manufacturers Feel That Vertical Price Fixing Should Be Legal