When a firm colludes with other firms to control prices, it is engaging in
A)competitive favoritism.
B)industry tightening.
C)monopolistic competition.
D)price fixing.
E)regressive pricing.

Question

Quizplus · Accepted Answer

Price fixing is the act of collusion among market participants to determine the prices of goods or services. It involves an agreement between two or more firms to avoid competing with each other and instead set the price of their products or services at a certain level. This behavior is illegal and can lead to significant harm to consumers, as they are forced to pay higher prices for goods and services.

When a Firm Colludes with Other Firms to Control Prices