Which statement best defines price fixing?
A) A policy whereby a firm charges a high introductory price,often coupled with heavy promotion
B) A policy whereby a firm charges a relatively low price for a product when it is first rolled out
C) An agreement between two or more firms on the price they will charge for a product
D) Charging a price identical to or very close to the competition's price

Question

Quizplus · Accepted Answer

Price fixing is an illegal agreement between two or more firms to set the price of a product, rather than allowing it to be determined by market forces.

Which Statement Best Defines Price Fixing