Mark Johnson,the manager of a discount consumer electronics store,has been approached by the manufacturer of a popular and profitable line of compact disk storage racks regarding the retail price charged for the racks at Johnson's store.The manufacturer's representative has implied that if Johnson doesn't raise the retail prices for the storage racks to those charged by the manufacturer's non-discount customers,Johnson's supply of racks may be severely curtailed.The manufacturer is guilty of attempting:
A)horizontal price fixing.
B)resale price maintenance.
C)price discrimination.
D)predatory pricing.

Question

Quizplus · Accepted Answer

The manufacturer is attempting to engage in resale price maintenance by pressuring the retailer to raise their prices to match those charged by non-discounted customers. This practice is illegal under antitrust laws, as it restricts competition and can result in higher prices for consumers.

Mark Johnson,the Manager of a Discount Consumer Electronics Store,has Been