What is resale price maintenance? Is resale price maintenance legal in the United States?
What will be an ideal response?
Resale price maintenance occurs when a manufacturer agrees with a distributor on the price at which the product will be resold. For instance, Sony could arrange with Best Buy the price for which Sony televisions are sold. Resale price maintenance (also called vertical price fixing) agreements are illegal under the Sherman Act. But it isn't illegal for a manufacturer to refuse to supply a retailer who doesn't accept guidance on what the price should be.
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The quantity of GDP produced per worker, typically measured in quantity of GDP per hour of labor, is known as
a. labor productivity b. capital productivity c. the degree of labor specialization d. the marginal productivity of labor e. the size of the labor force
Which of the following statements best reflects a price-taking firm?
a. If the firm were to charge more than the going price, it would sell none of its goods. b. The firm has an incentive to charge less than the market price to earn higher revenue. c. The firm can sell only a limited amount of output at the market price before the market price will fall. d. Price-taking firms maximize profits by charging a price above marginal cost.