When one company makes a deal with another company to set a price at a given level for a product or service, which is usually higher than the equilibrium price in competitive markets, this act is called
A) price gouging.
B) price fixing.
C) predatory pricing.
D) price discrimination.

Question

Quizplus · Accepted Answer

Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level, often higher than the equilibrium price.

When One Company Makes a Deal with Another Company to Set