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Which of the following is an example of a vertical restraint of trade?

A.) Group boycott
B.) Price fixing
C.) Resale price maintenance
D.) Division of markets

User Greenleaf
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1 Answer

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Final answer:

Resale price maintenance is an example of a vertical restraint of trade, which is where manufacturers set the prices retailers must adhere to when selling products, potentially reducing competition. Therefore correct option is C

Step-by-step explanation:

An example of a vertical restraint of trade would be C.) Resale price maintenance. Vertical restraints are restrictions imposed by a party at one level of the market on a party at another level, such as manufacturers dictating the prices at which retailers can sell their products. This practice can reduce competition by not allowing retailers to independently price items to attract consumers. The U.S. antitrust laws, enforced by the Federal Trade Commission and the U.S. Department of Justice, address these types of anticompetitive practices, as they may have the effect of reducing competition in similar ways to tie-in sales, bundling, and predatory pricing.

User Atrueresistance
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