Final answer:
A minimum resale price maintenance agreement is when a manufacturer and a retailer agree on a minimum price at which the retailer must sell the manufacturer's products. It can reduce competition by preventing price undercutting between retailers. These agreements may be acceptable in certain situations.
Step-by-step explanation:
A minimum resale price maintenance agreement is an agreement between a manufacturer and a retailer that sets a minimum price at which the retailer must sell the manufacturer's products. This agreement can reduce competition by preventing retailers from undercutting each other on price. While minimum resale price maintenance agreements can limit competition, they may be acceptable in certain circumstances to protect brand image or ensure fair pricing.