There Are Two Ice Cream Stands at the Same Intersection

question 13

Multiple Choice

There are two ice cream stands at the same intersection. In order to protect their businesses, the two owners agree that they will charge their customers the same prices for an ice cream cone. What type of horizontal restraint is this?

• A) none (It is not a horizontal restraint.)
• B) price-fixing
• C) market allocation
• D) boycott

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Definitions:

Bill Clinton

The 42nd President of the United States who served from 1993 to 2001.

Federal Building

A building owned or leased by the federal government of a country, often housing government offices.

Private Militia Group

An armed group that is not part of the official military or police force of a country and often operates with a degree of autonomy to pursue specific objectives.