Horizontal price fixing involves an agreement ________.
A) to charge retail firms lower prices in areas with an undesirable competitor
B) by any channel member not to sell merchandise below cost
C) among manufacturers, among wholesalers, or among retailers to set prices
D) by retailers to charge the price level suggested by manufacturers or wholesalers

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when competitors in the same level of a distribution chain agree to set prices at a certain level. In this case, it refers to agreements among manufacturers, wholesalers, or retailers to set prices. Option A and D do not accurately describe horizontal price fixing, while option B refers to a different type of behavior, namely predatory pricing.

Horizontal Price Fixing Involves an Agreement ________