In Order to Obtain a Conviction for Price Fixing Under

question 185

Multiple Choice

In order to obtain a conviction for price fixing under the Sherman Antitrust Act, the government needs to prove:

• A) only that an attempt to fix prices was made.
• B) that there was a price-fixing agreement that actually lessened competition.
• C) that there was a high concentration ratio for the industry.
• D) all of these.

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Definitions:

Equilibrium Quantity

The level of goods or services supplied matches the consumer demand at the price which establishes market equilibrium.

Preset Price

refers to a price that is established in advance and does not change in response to market conditions or negotiation.

Price Ceiling

A legal maximum price set by the government on certain goods and services to prevent prices from becoming too high.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, typically set above the equilibrium price to aid producers.