You own a hair salon in a college town. Because there is competition for customers, the salons have been in a price war. You invite all salon owners to your home. They decide that the price war is hurting everyone and agree to charge standard rates for hairstyling. This arrangement is:

Question

Quizplus · Accepted Answer

The arrangement made by the salon owners to charge standard rates for hairstyling amounts to price fixing, which is a violation of antitrust laws. This agreement eliminates competition among the salons and raises prices for customers. It does not matter if the agreement was voluntary or if the prices were already low; price-fixing agreements are generally considered illegal under antitrust laws.

You Own a Hair Salon in a College Town