Question: Gadgets for Sale or Not How come the prices of some gadgets, like the iPod, are the same no matter where you shop? No, the answer isn't that Apple illegally manages prices. In reality, Apple uses an accepted retail strategy called minimum advertised price to discourage resellers from discounting. The minimum advertised price (MAP) is the absolute lowest price of a product that resellers can advertise. Marketing subsidies offered by a manufacturer to its resellers usually keep the price at or above
a. Describe the practice of resale price maintenance that violates the anti-combine law.
b. Describe the MAP strategy used by Apple and explain how it differs from a resale price maintenance agreement that would violate the anticombine law.