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

Question

Quizplus · Accepted Answer

This scenario is an example of horizontal price fixing, where competitors at the same level of the market structure agree to set prices, which is typically illegal under antitrust laws.

If All Milk Producers in the Area Agree to Set