When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in
A)loss-leader price fixing.
B)bait-and-switch price fixing.
C)horizontal price fixing.
D)vertical price fixing.
E)predatory pricing.

Question

Quizplus · Accepted Answer

When members of the marketing channel collude to control the prices passed on to consumers, they are engaging in vertical price fixing. This occurs when manufacturers, wholesalers, and retailers work together to control the prices of products or services, ultimately harming consumers by limiting their ability to find competitive prices. This type of price fixing is illegal under antitrust laws.

When Members of the Marketing Channel Collude to Control the Prices