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Many Economists Argue That Resale Price Maintenance

Question 12

Multiple Choice

Many economists argue that resale price maintenance


A) has a legitimate purpose of stopping discount retailers from free riding on the services provided by full service retailers.
B) is price fixing and, therefore, is prohibited by law.
C) is price fixing and, therefore, is prohibited by law and enhances the market power of the producer.
D) enhances the market power of the producer.

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