In Ravonia, the telecom sector is dominated by four major service providers: Flank, Zelno, Tuhaz, and Klock. The service providers determine call rates and broadband rates using a collective strategy. They maintain uniform pricing and compete mainly on quality and service. Flank, Zelno, Tuhaz, and Klock are using a _____ strategy.

Question

Quizplus · Accepted Answer

The telecom service providers are engaging in horizontal price fixing by collectively setting their rates and maintaining uniform pricing. This restricts competition and can harm consumers by limiting their options and potentially raising prices.

In Ravonia, the Telecom Sector Is Dominated by Four Major