A situation in which sellers collude to set prices in response to quotations for products is called:
A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question

Quizplus · Accepted Answer

Bid rigging is when sellers collude to set prices in response to quotations for products. They agree on the prices they will bid or the winner of the bid, thereby reducing competition and artificially inflating prices. This is illegal and anticompetitive behavior. Bait-and-switch refers to advertising a product at a low price to attract customers but then attempting to sell them a more expensive item. Predatory pricing is setting prices so low that competitors cannot compete and go out of business, and then raising prices once the competition is eliminated. Referral selling involves the use of referrals to sell products, often in a pyramid selling scheme where individuals are incentivized to bring in new sellers.

A Situation in Which Sellers Collude to Set Prices in Response