An agreement between firms operating at different levels in the manufacturing and distribution process does not affect competition.

Question

Quizplus · Accepted Answer

An agreement between firms operating at different levels in the manufacturing and distribution process can have an impact on competition. Such agreements could limit competition by restricting access to supplies or distribution channels, or by artificially raising prices. As a result, such agreements may be subject to antitrust scrutiny to ensure that they do not harm competition.

An Agreement Between Firms Operating at Different Levels in the Manufacturing