Maximum retail price

From Market
Revision as of 18:34, 14 November 2009 by Vipul (talk | contribs) (Created page with '==Definition== A '''maximum retail price''' is an upper limit on the price of a good set by the manufacturer or distributor of a good on retailers or final point-of-sale purchas…')
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Definition

A maximum retail price is an upper limit on the price of a good set by the manufacturer or distributor of a good on retailers or final point-of-sale purchases.

A maximum retail price is somewhat similar to a price ceiling, in the sense that it puts an upper limit on price. However, price ceiling typically refers to a mandatory ceiling imposed by a governmental or regulatory authority while maximum retail price refers to an upper limit on price that is agreed upon between the manufacturer/distributor and the various retailers.