When sellers set prices after talking to competitors and engaging in collusion,they are involved in ________.
A) predatory pricing
B) discriminatory pricing
C) price fixing
D) skimming pricing
E) penetration pricing

Question

Quizplus · Accepted Answer

Price fixing involves collusion between sellers to set prices at a certain level, which can harm competition and result in higher prices for consumers. This is different from predatory pricing, where a seller intentionally sets prices lower than competitors in order to drive them out of business, and discriminatory pricing, where different customers are charged different prices. Skimming pricing and penetration pricing refer to pricing strategies based on the product's target market and position in the market, rather than collusion between sellers.

When Sellers Set Prices After Talking to Competitors and Engaging