Omni Discount Company and Price-Lo Stores, Inc., agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely

Question

Omni Discount Company and Price-Lo Stores, Inc., agree to abide by the decisions of Quality Marketing Corporation as to their respective levels of production, markets, and prices, effectively reducing competition and increasing profits. This is most likely​

Quizplus · Accepted Answer

The agreement between the two companies to abide by the decisions of Quality Marketing Corporation is likely to be an illegal restraint on trade, as it reduces competition and increases profits through coordination of production, markets, and prices. Such agreements are generally viewed as anti-competitive and can be deemed illegal under antitrust laws.