The pricing strategy in which there is an explicit agreement among producers regarding price is called
A)Price discrimination.
B)Price-fixing.
C)Price leadership.
D)Marginal cost pricing.

Question

Quizplus · Accepted Answer

The pricing strategy in which there is an explicit agreement among producers regarding price is called price-fixing, which is illegal in many countries including the United States. Price discrimination refers to charging different prices for the same product to different customers based on their ability to pay or willingness to pay. Price leadership occurs when one firm sets the price and other firms follow suit. Marginal cost pricing is a pricing strategy in which price is set at the marginal cost of production.

The Pricing Strategy in Which There Is an Explicit Agreement