Explain how the courts have ruled on price fixing
What will be an ideal response?
Price fixing among competitors is always a violation of the antitrust law. This type of price fixing, in and of itself, is a violation of the law. If the government can prove the existence of price fixing, the accused firms are guilty because there are no mitigating circumstances allowed. Price fixing in the form of resale price maintenance is legal as long as it is not anticompetitive.
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Refer to the scenario above. If both firms operate to maximize profits, the:
A) total cost of production is minimized. B) total combined profits are minimized. C) marginal cost of both firms are minimized. D) marginal cost of both firms are maximized.
The theory of PPP suggests that if one country's price level falls relative to another's, its currency should
A) depreciate. B) appreciate. C) float. D) do none of the above.