Which of the following is true with regard to price fixing?
A) Price fixing is a reasonable violation of Section 1 of the Sherman Act.
B) Price fixing is a process seen exclusively among sellers of goods and services.
C) Price fixing is permissible as it helps consumers or protects competitors from ruinous competition.
D) Price fixing also involves fixing the quantity of a product or service to be produced or provided.

Question

Quizplus · Accepted Answer

Price fixing involves fixing the price and/or quantity of a product or service, to be produced or provided. Options A and C are incorrect as price fixing is a violation of Section 1 of the Sherman Act, and it is not permissible as it harms consumer welfare and limits competition. Option B is also incorrect as price fixing can be seen among both sellers and buyers.

Which of the Following Is True with Regard to Price