What is price-fixing?
What will be an ideal response?
Price-fixing is an attempt to interfere with the market by controlling prices. Attempts by competitors to interfere with the market and control prices are called horizontal price-fixing and are illegal per se under Section 1 of the Sherman Act. Price-fixing may take the form of direct agreements among competitors about what price they will sell a product for or what price they will offer for a product. It may also be accomplished by agreements on the quantities to be produced, offered for sale, or bought. Attempts by manufacturers to control the resale price of their products are called vertical price-fixing or resale price maintenance. If the manufacturer gets the retailer to agree to follow the suggested retail price, such an agreement is joint action in restraint of trade and may be illegal per se under Section 1 of the Sherman Act.
You might also like to view...
Answer the following statements true (T) or false (F)
In portfolio theory, systematic risk is defined as the variance of expected investment returns.
Article I of the Constitution created the:
A) judicial branch of government. B) legislative branch of government. C) executive branch of government. D) Due Process Clause.
Traders take advantage of deviations from purchasing power parity by buying cheap goods and selling expensive ones. This trading causes the price of goods to ________ and exchange rates to ________
A) fall; fall B) rise; rise C) fall; rise D) rise; fall
A right can exist: A) by itself
B) only if created by a court. C) only if there is a corresponding duty. D) only under local law.