-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 perfectly competitive industries.
E)It is legal in United States.

Question

-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 perfectly competitive industries. 
E)It is legal in United States.

Quizplus · Accepted Answer

Price fixing is considered illegal because it involves an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold, not allowing the market to determine prices naturally. This undermines competition and is prohibited by antitrust laws in many jurisdictions, including the United States.

-Which of the Following Statements Is True of Price Fixing