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

Setting a minimum price for raw milk among all milk producers in the area would be an example of horizontal price fixing, in which competitors agree to set a minimum price to avoid undercutting each other and maintain higher profits. It would not be considered horizontal allocation, vertical market restraint, or a tying arrangement.

If All Milk Producers in the Area Agree to Set