Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat.It would be easiest to maintain this arrangement when:

Question

Quizplus · Accepted Answer

The easiest way to maintain a price-fixing arrangement is when the number of competitors is small. With fewer competitors, it is easier for the firms to monitor each other's prices and ensure that they are all adhering to the agreed-upon prices. If there were many competitors, it would be difficult to coordinate and enforce the price-fixing agreement. Therefore, option A is the best choice.

Assume the Four Major Grocery Stores in a Large Metropolitan