Resale price maintenance is the situation in which a producer
A)sets a list price and does not allow the retailer to offer a discount.
B)does not allow a retailer to sell goods made by a competing manufacturer.
C)places no restrictions on a retailer's prices.
D)limits the regions over which a retailer can sell a certain product.
E)restrains trade horizontally.

Question

Quizplus · Accepted Answer

Resale price maintenance occurs when a producer sets a minimum or list price at which a product must be sold, and does not allow retailers to offer discounts or sell below that price. This is a form of vertical price fixing and can have anticompetitive effects.

Resale Price Maintenance Is the Situation in Which a Producer