Federal legislation on price-fixing requires that sellers set their prices ________.
A)based on their fixed and variable costs
B)without communication with competitors
C)to achieve a specified profit margin
D)with the intention of putting competitors out of business
E)consistently throughout a region

Question

Quizplus · Accepted Answer

Federal legislation on price-fixing prohibits sellers from communicating with competitors to set prices, as this would eliminate competition and violate antitrust laws. Prices should be determined based on legitimate factors such as costs, market demand, and competitive pressures, but not through collusion or coordination with other companies.

Federal Legislation on Price-Fixing Requires That Sellers Set Their Prices