Two or more competitors explicitly or implicitly setting prices is referred to as _________.
A)competitive collusion
B)vertical price fixing
C)horizontal price fixing
D)subversive competition
E)price alignment

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when two or more competitors agree to set prices at a certain level, rather than allowing market competition to determine prices. This is illegal under antitrust laws. Competitive collusion (A) refers to any agreement between competitors that intentionally harms competition. Vertical price fixing (B) occurs when manufacturers or suppliers set prices for their products sold through resellers, and is also illegal. Subversive competition (D) and price alignment (E) are not commonly used terms in the context of pricing practices.

Two or More Competitors Explicitly or Implicitly Setting Prices Is