The Sherman Antitrust Act prohibits price fixing. Price fixing is
A) an attempt to establish high prices by becoming the market leader.
B) the use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is.
C) the practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage.
D) an agreement among competing firms to raise, lower, or maintain prices for mutual benefit.
E) the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace.

Question

Quizplus · Accepted Answer

The Sherman Antitrust Act prohibits price fixing, which is an agreement among competing firms to raise, lower, or maintain prices for mutual benefit. This type of agreement is considered anti-competitive and harms consumers by eliminating competition and artificially inflating prices.

The Sherman Antitrust Act Prohibits Price Fixing