A hotel management institute develops a training program for students.The fee for the training program is $1,000.The institute offers to share the training program with other colleges for a low price.One of the terms of the contract is that the other colleges should not offer the program to their students for less than $1,000.This is an example of:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

This is an example of price fixing, where the institute is setting a minimum price for the program and prohibiting other colleges from offering it at a lower price. This practice is illegal under anti-trust laws as it restricts competition and harms consumers.

A Hotel Management Institute Develops a Training Program for Students