Question

The manufacturer of south face sells jackets to retail stores for $120 each, and it requires the retail stores to charge customers $150 per jacket. any retailer that charges less than $150 would violate its contract with south face. what do economists call this business practice?

Answer 1

The answer is "Resale price maintenance".

Step-by-step explanation:

Resale price maintenance refers to an authoritative arrangement which was made between a producer and a merchant whereby the wholesaler agrees to comply with expressed resale value minimums or maximums.

Resale price maintenance is a typical strategy which is utilized by producers that need to keep up a specific brand picture in the commercial center by keeping resale value focuses inside a specific range.