If the Amador County Pest Control Association got together and all members agreed to charge 3 percent of the value of a home for a termite inspection letter,the association members would be engaging in
A) loss leader pricing.
B) bait and switch pricing.
C) horizontal price fixing.
D) monopolistic competition.
E) predatory pricing.

Question

Quizplus · Accepted Answer

When competitors in a particular industry agree to charge customers a specific price, it is known as horizontal price fixing. In this scenario, the Amador County Pest Control Association is engaging in such a practice by agreeing to charge 3 percent of the value of a home for a termite inspection letter. This is illegal under antitrust laws as it restricts competition and harms consumers by eliminating price competition among the association members.

If the Amador County Pest Control Association Got Together and All