What do many economists believe is the valid reason behind resale price maintenance?

Oligopoly MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Oligopolyeconomics-mcqs › oligopoly
Published
30 May 2019
Last updated
28 May 2026

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Explanation

Many economists argue that resale price maintenance is justified as it prevents discount retailers from free riding on the services provided by full-service retailers. Although some view it as price fixing and illegal, its main purpose is to protect service investments made by full-service sellers.

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