If four quick oil change service companies agree to reduce the number of cars they service each month in an effort to raise the price for the service, this is an example of ________.
A)market division
B)bid suppression
C)output restrictions
D)resale price maintenance

Question

Quizplus · Accepted Answer

This is an example of output restrictions, where the companies are agreeing to reduce the number of cars they service each month in order to limit the supply of the service, which can lead to increased prices due to higher demand. This is a violation of antitrust laws as it restricts competition and harms consumers.

If Four Quick Oil Change Service Companies Agree to Reduce