Manufacturers who refuse to deal with retailers who do not charge a suggested retail price have...

Manufacturers who refuse to deal with retailers who do not charge a suggested retail price have committed a per se violation of the antitrust laws.

True

False

Expert Solution

False.

Manufacturers sugest a price that may benefit consumers by interbrand or even intrabrand competition. The maximum retailprice is a kind of price ceiling that prevents retilers from charging very hgh prices from consumers.

On the other hand,antitrust laws promote competition and protect consumers from anticompetitive business practices. If competitors collude on elimination of bidding, that would be a per se violation. Or an agreement among competitors to control the supply of their products is a per se violaton. Thus the acts that are harmful to competition and are considered to be illegal are per se violations of antitrust laws. They include any arrangement to fix prices, divide markets, or rig bids. But the acts that intend to protect consumers from exploitaion by retailers are not per se violations. And, setting a mximum price by the manufacturer is done with an intention of protecting the consumer, hence it is not a violation of antirust law.

Rahul Sunny answered 9 months ago

The manufacturer's suggested retail price (MSRP) for a particular car is $24,950, and it is expected...

The manufacturer's suggested retail price (MSRP) for a particular car is $24,950, and it is expected to be worth $19,508 in 2 years. (a) Find a linear depreciation function for this car. (b) Estimate the value of the car 5 years from now. (c) At what rate is the car depreciating?

Product X is a consumer product with a retail price of $12.95. Retailers margins on the...

Product X is a consumer product with a retail price of $12.95. Retailers margins on the product are 40% and wholesaler’s margins are 8% (based on the selling price). Total retail size of the market in which Product X competes is $425MM (MM stands for millions), and Product X’s market share (in dollars) is 21.3%. Manufacturing fixed costs of Product X are $1,400,000 and the variable costs are $.86 per unit. Product X spends $2,000,000 a year on advertising, and...

Twinkies- Primary product Suggested Retail Price Company $ 2.99 Mark Up 50% Selling Price to the...

Twinkies- Primary product Suggested Retail Price Company $ 2.99 Mark Up 50% Selling Price to the distributor/merchandiser $ 1.99 Suggested Retail Price to the company $ 1.99 Less: Cost of twinkie 69.03% $ 1.37 Gross Margin 30.97% $ 0.62 Pop tarts- Competitor product Suggested Retail Price Company $2.00 Mark Up 50% Selling Price to the distributor/merchandiser $ 1.33 Suggested Retail Price to the company $ 1.33 Less: Cost of twinkie 64.02% $ 0.85 Gross Margin 35.98% $ 0.48 1. Comment...

Pricing Analysis Acme’s Marketing team has established a MSRP (manufacturer’s suggested retail price) for each gadget...

Pricing Analysis Acme’s Marketing team has established a MSRP (manufacturer’s suggested retail price) for each gadget based on the feedback of consumers and tech journalists that were selected to review the prototype gadgets. The MSRP has been set as $449, $499, and $425 for Gadgets A, B and C respectively. Acme’s sales team wishes to establish a net price (to retailers) that will allow retailers a series of markdowns for the gadget, first by 15% during regular sale periods (to...

Menen Quality Manufacturers has recently hired a new manager called Mr Freddy who is in charge...

Menen Quality Manufacturers has recently hired a new manager called Mr Freddy who is in charge of both production and sales of products. You had a chance to meet Mr Freddy and discussed cost-volume-profit analysis. During the discussion, Mr Freddy told you that his focus for the coming five years is to put some effort in order to achieve breakeven point so that the company achieves its objectives. He said nothing is needed beyond that and asked you to express...

Identify price-takers and price-setters firms and Explain how much control do they have over the prices they charge?...

Identify price-takers and price-setters firms and Explain how much control do they have over the prices they charge? Explain your answer with adding real examples, either from experience or from other business in Oman country, to enrich answer quality and to connect theory with practice.

Do Alan’s parents have the right to refuse blood transfusion based on their religious beliefs? Consider...

Do Alan’s parents have the right to refuse blood transfusion based on their religious beliefs? Consider the five components of ethical energy. To what extent do you believe nurses possess those abilities? Explain your thinking.

Which one of the following statements, about the ability of retail producers who do not hold...

Which one of the following statements, about the ability of retail producers who do not hold a surplus lines license to place surplus lines insurance with an insurance customer, is true? Select one: a. They are free to place this business directly, on their own b. They may not become involved in surplus lines insurance in any way c. They may place this business only through a licensed surplus lines intermediary d. They may place this business on their own,...

What strategies should the team recommend to Dr. London? How do you deal with parents who...

What strategies should the team recommend to Dr. London? How do you deal with parents who refuse to vaccinate their children? As a public health official, should you promote vaccination compliance as a civic responsibility? How do you manage a conflict among individual behavior, organizational behavior, and public health goals?

- WHAT IS A LUXURY HOTEL? WHY DO THEY CHARGE A HIGHER PRICE THAN OTHER HOTELS?...

- WHAT IS A LUXURY HOTEL? WHY DO THEY CHARGE A HIGHER PRICE THAN OTHER HOTELS? WHY DO CUSTOMERS PAY THIS HIGHER PRICE? WHAT IS YOUR EXPERIENCE OF A LUXURY HOTEL? DISCUSS WITH REAL LIFE EXAMPLES - WRITE AN ESSAY OF 250 - 300 WORDS

Question