Two dairy farms supply milk to a local town.Both of them work together to control the price that the townspeople pay for milk.This is an example of:
A)predatory pricing.
B)vertical price fixing.
C)horizontal price fixing.
D)price discrimination.
E)bait and switch.

Question

Quizplus · Accepted Answer

This scenario is an example of horizontal price fixing, which is when two or more competitors agree to set prices for their products or services in order to eliminate competition and increase profits.

Two Dairy Farms Supply Milk to a Local Town