Suppose the only three existing manufacturers of video game players signed a written contract by which each agreed to charge the same price for products and to distribute their products only in the geographical area assigned them in the contract. This best describes

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Quizplus · Accepted Answer

This scenario describes a cartel, which is an agreement among competing firms to coordinate prices and limit competition. In this case, the three manufacturers are colluding to set prices and restrict distribution, which is illegal in most countries. Cost-plus pricing involves setting prices based on production costs and desired profit margins, while multiproduct pricing refers to strategies that involve pricing multiple products together. Price leadership occurs when one firm sets prices and the others follow suit. None of these concepts accurately describe the scenario presented.

Suppose the Only Three Existing Manufacturers of Video Game Players