The Difference Between Horizontal Price Fixing and Vertical Price Fixing

question 51

Multiple Choice

The difference between horizontal price fixing and vertical price fixing is based on ________.

• A) whether the channel members are at the same level
• B) the legality of the resulting prices
• C) the effect on final selling prices
• D) whether collusion is involved

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Definitions:

Buildings

Physical structures owned by a business, typically used for offices, manufacturing, or storage.

Equipment

Tangible property used in the operation of a business, not intended for sale, such as machinery, computers, and tools.

Natural Resources

Assets that are found in nature and are used for economic gain, such as oil, forests, minerals, or water.

Depletion Expense

An accounting approach for allocating the cost of extracting natural resources from the earth over the period of their extraction.