A restraint of trade in which two or more competitors at one level of distribution agree not to deal with others at another level of distribution is known as ________.
A) group boycott
B) resale price maintenance
C) price fixing
D) market sharing

Question

Quizplus · Accepted Answer

A group boycott occurs when two or more competitors agree to not do business with another company or group of companies. This is a violation of antitrust laws because it eliminates competition and can lead to a monopoly. Resale price maintenance is when manufacturers set a minimum price for a product that retailers must charge, which can also limit competition. Price fixing is when competitors agree to set prices at a certain level, also limiting competition. Market sharing is when competitors agree to divide up a market or territory, which can result in higher prices for consumers.

A Restraint of Trade in Which Two or More Competitors