Which of the Following Statements Is True of Price Fixing

question 51

Multiple Choice

Which of the following statements is true of price fixing?

• A)It represents a high level of competition in an industry.
• B)It is allowed only under the provisions of the Federal Trade Commission Act.
• C)It is,by definition,illegal,as there is no justification for it.
• D)It occurs only in monopolistically competitive industries.
• E)It is legal in United States.

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Definitions:

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.

LIFO Reserve

The difference between inventory reported using the Last-In, First-Out (LIFO) method and its value if the First-In, First-Out (FIFO) method were used, indicating the impact of inflation on inventory costs.

Internal Reporting

The process of preparing and presenting financial and operational information to management and other internal stakeholders to assist in decision-making and performance evaluation.

GAAP Reporting

The standard framework of guidelines for financial accounting that includes the details, complexities, and legalities of business and corporate accounting. GAAP stands for Generally Accepted Accounting Principles.