Four companies dealing in dairy products admitted that they met to increase the price of their common products together.Which of the following exemplifies the activity of these companies?
A)Price fixing
B)Price discrimination
C)Predatory pricing
D)Referral selling
E)Resale price maintenance

Question

Quizplus · Accepted Answer

The activity of four companies meeting together to increase the price of their common products is an example of price fixing, which is a violation of antitrust laws. Price discrimination refers to charging different prices to different customers for the same product, predatory pricing involves setting low prices to drive competitors out of the market, referral selling is a marketing technique that involves getting customers to refer other customers, and resale price maintenance is a practice where a manufacturer sets a minimum resale price for its products.

Four Companies Dealing in Dairy Products Admitted That They Met