There are two ice cream stands at the same intersection.In order to protect their businesses,the two owners agree that they will charge their customers the same prices for an ice cream cone.What type of horizontal restraint is this?

Question

Quizplus · Accepted Answer

Price fixing is an agreement between two or more competitors to set the same prices for their products or services. In this case, the two ice cream stands are setting the same prices to protect their businesses, which is considered price fixing. The other options, market allocation and boycott, do not apply as they are different types of horizontal restraints.

There Are Two Ice Cream Stands at the Same Intersection