Maximum retail price

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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.