Horizontal Price-Fixing

question 36

Multiple Choice

Horizontal price-fixing:

• A) is also called resale price maintenance.
• B) occurs when the manufacturer gets the retailer to agree to follow the suggested retail price.
• C) can be legally justified if there was a direct agreement between competitors.
• D) is an attempt by competitors to interfere with the market and control prices.

---

Definitions:

Natural Tolerances

The inherent variability found within a natural process or system's parameters.

Normal Distribution

It is characterized by a symmetric shape around the mean, where data samples are more densely populated close to the mean and less so the farther they are from it.

Inside Diameter

The measure of the distance across the innermost part of a hollow object or space.

Lower Control Limit

A threshold value in statistical process control below which a process is considered to be out of control on the lower side.