Two supermarkets agree to charge $3.50 for a gallon of milk,which is a fair price in the locality.This action is:

Question

Quizplus · Accepted Answer

Horizontal price-fixing is when two or more competitors agree to fix prices at the same level. In this scenario, the two supermarkets are agreeing to charge the same price for a gallon of milk, which is an example of horizontal price-fixing. It is illegal because it violates antitrust laws, regardless of whether the price is fair or not. Therefore, the correct answer is A).

Two Supermarkets Agree to Charge $3