The president of a major airline makes telephone calls to the top executives of several other airlines asking them to "hold the line" and refrain from offering discounts on fares for several key routes in order to improve profit margins. This practice could easily be considered:
A) dumping.
B) price discrimination.
C) price fixing.
D) zone pricing.
E) None of these is a good answer.

Question

Quizplus · Accepted Answer

Price fixing occurs when competitors get together to raise, lower, or stabilize prices.

The President of a Major Airline Makes Telephone Calls to the Top