Which of the following statements is true of price fixing?
A)It represents a high level of competition in an industry.
B)It is allowed only under the provisions of the Federal Trade Commission Act.
C)It is,by definition,illegal,as there is no justification for it.
D)It occurs only in monopolistically competitive industries.
E)It is legal in United States.

Question

Quizplus · Accepted Answer

Price fixing is an agreement between competitors to set the price of a product or service, and it is illegal under U.S. antitrust laws. There is no justification for such an agreement as it eliminates competition and harms consumers.

Which of the Following Statements Is True of Price Fixing