If Two or More Firms Collude to Fix Prices, This

question 101

Multiple Choice

If two or more firms collude to fix prices, this would be outlawed by the:

• A) Federal Trade Commission Act.
• B) Clayton Act.
• C) Robinson-Patman Act.
• D) Sherman Antitrust Act.

---

Definitions:

Advertising Budget

The allocation of funds toward advertising activities intended to communicate products, services, or brand messages to target customers.

Selling Price

The amount for which a product or service is sold to the customer.

Margin Of Safety

The difference between actual sales and breakeven sales, quantifying how much output or sales level can drop before a business incurs a loss.

Variable Expenses

Costs that change in direct proportion to changes in the level of activity or production volume, such as raw material costs.