If all milk producers in the area agree to set a minimum price for raw milk, this would be an example of:
A) a tying arrangement.
B) horizontal price fixing.
C) horizontal allocation.
D) vertical market restraint.

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when competitors within the same industry agree on prices or price ranges, rather than competing with each other. This agreement among all milk producers in the area to set a minimum price for raw milk is a classic example of horizontal price fixing.

If All Milk Producers in the Area Agree to Set