A Situation in Which Firms Conspire to Set Prices for Goods

question 42

Multiple Choice

A situation in which firms conspire to set prices for goods sold in the same market is called

• A)a horizontal merger.
• B)price fixing.
• C)resale price maintenance.
• D)a vertical restraint.
• E)artificial price control.

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Definitions:

Substantial Performance

A level of performance of a contract deemed acceptable even if it does not comply with all terms, due to substantial compliance with the contract.

Conditions Precedent

Specific conditions outlined in a contract that must be met before a party is required to fulfill their part of the agreement.

Conditions Subsequent

Contractual clauses that stipulate certain events or actions must occur or fail to occur, which will terminate an existing obligation or contract.

Nominal Conditions

Conditions in name only, having little to no impact on the terms or outcome of a contract or agreement.