Which of the following is an aim of a price-fixing agreement?
A)Reducing entry barriers
B)Increasing profit
C)Reducing price
D)Increasing demand

Question

Quizplus · Accepted Answer

Price-fixing agreements are formed between companies to coordinate and control the pricing of their products or services. The main aim of such agreements is to increase profits by eliminating competition and controlling the market price. Option A is incorrect because price-fixing agreements increase entry barriers, making it harder for new companies to enter the market. Option C is incorrect because the purpose of a price-fixing agreement is to set prices at a higher level than they would be in a competitive market. Option D is incorrect because a price-fixing agreement is unlikely to increase demand, as it often involves reducing the supply of goods or services.

Which of the Following Is an Aim of a Price-Fixing