When a group of competing retailers establishes a fixed price at which to sell their merchandise,they are engaging in horizontal price fixing.

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when competitors at the same level of distribution, such as retailers, agree to set a fixed price for their products or services. This is illegal under antitrust laws and can harm consumers by limiting their choices and potentially causing them to pay higher prices.

When a Group of Competing Retailers Establishes a Fixed Price