College

Which of the following occurs when competitors making the same product jointly determine what price each will charge customers for the item?

A) horizontal price fixing
B) vertical price fixing
C) predatory pricing
D) internal reference pricing
E) assimilation pricing

Answer :

The horizontal price fixing occurs when competitors making the same product jointly determine what price each will charge customers for the item. The correct option is A.

The price fixing is the contract or agreement term between the two parties from the one side who want to buy or sell the products or services to another parties in the fix price to earn profits.

The horizontal price fixing comes under the collusion. In the price of manufacturing, shipping and delivery to store will be the fix. The products are from the horizontal price fixing helps the company to earn the targeted finance growth and also refers to competitors making the same product jointly.

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