Assume that Blinko's offers Mom n' Pop's Print Shop the chance to set their prices at the same rate, in an effort to avoid any antitrust action Mom n' Pop's wants to file. Blinko's tells them that if they do that, they will get just as much business as Blinko's does and the other competitors will be unable to compete. What possible violation might this be?

Question

Quizplus · Accepted Answer

Price fixing occurs when competing companies agree on pricing strategies, rather than letting market forces set prices. In this scenario, Blinko's proposal to Mom n' Pop's Print Shop to set their prices at the same rate to avoid competition and antitrust action is a classic example of price fixing, as it involves an agreement between competitors on price levels.

Assume That Blinko's Offers Mom N' Pop's Print Shop the Chance