Which of these actions regarding horizontal pricing is legally permissible?
A) A firm's independently planning to match a competitor's lower price
B) A firm's discussing trade discounts with competitors at a convention
C) A firm's exchanging price information with competitors
D) A firm's agreeing to rotate low bids on important federal government contracts with other companies

Question

Quizplus · Accepted Answer

A firm independently deciding to match a competitor's lower price is legally permissible as it involves independent action rather than collusion or agreement with competitors, which are typically the focus of legal restrictions in antitrust law.

Which of These Actions Regarding Horizontal Pricing Is Legally Permissible