Citron is a firm that manufactures electric scooters. Suppose Citron sells its electric scooters to online retailers for $810 each and requires those online retailers to charge at least $840 to shoppers for each electric scooter. Warm Winds is the only firm producing air fryers. It costs $410 to produce one air fryer, and Warm Winds sells each air fryer for $950. After Sirocco, a new firm with the same costs as Warm Winds, enters the market for air fryers, Warm Winds starts selling its air fryers for a price of $330. Wallyâs sells a wide variety of skateboards to retail sporting good outlets. Wallyâs recently rolled out two new skateboards: a popular Dallas II and a much less popular Drydeck 3. Wallyâs requires sporting good outlets to order 15 boards of the Drydeck 3 for every 120 boards of the Dallas II bought. True or False: The only reason for Citron to require retailers to sell electric scooters at a certain price is to reduce competition and extend its market power to the retail market. Therefore, this practice is always economically inefficient.
True
False