Companies that collude to set prices at a mutually beneficial high level are engaged in ________.
A) price discrimination
B) deceptive pricing
C) predatory pricing
D) price-fixing
E) bait and switch

Question

Quizplus · Accepted Answer

Price-fixing is the practice of companies colluding to set prices at a mutually beneficial high level, which is illegal and unethical. Price discrimination refers to charging different prices for different customers or groups, deceptive pricing refers to hiding the true price or misrepresenting the product's value, predatory pricing refers to pricing below cost to drive competitors out of the market, and bait and switch refers to advertising a product at a low price, but then offering a more expensive substitute. None of these options accurately describe the behavior of companies colluding to set prices at a high level.

Companies That Collude to Set Prices at a Mutually Beneficial