Merits of resale price maintenance
- It reduces the unfair competition between small scale and large scale retailers.
- It is non-inflationary because it prevents prices from raising i.e. it keeps prices stable in a market.
- It protects the consumers from being overcharged or cheated or exploited by the retailers.
- It increases the sales and market of the producer.
- It saves time because there is no need to bargain.
- It stabilizes the market for the producers.
- It stabilizes the profit margin of the producer.