Why would warehouse electronics be unable to reveal the name

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Reference no: EM131976709

Problem

You are watching television. An advertisement begins, "Come on down to Warehouse Electronics. We've got deals so great you won't believe it! National brand 13 inch color television sets for $119. The price is so low that we can't tell you the name of the manufacturer!"

1. Why would Warehouse Electronics be unable to reveal the name of the manufacturer when it advertises its television sets for an unusually low price?

2. Although this activity appears like price fixing, is the objective of this practice to reduce competition? Why?

3. Why would the manufacturer place this type of restriction on the retailers that sell its products?

Reference no: EM131976709

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