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1 year ago

when members of the marketing channel collude to control the prices passed on to consumers, they are engaging in

1 answer:

6 0

Vertical price fixing occurs when members of the marketing channel work together to influence the costs passed on to customers.

<h3>What are vertical and horizontal price fixing?</h3>

Vertical price fixing refers to price fixing along the supply chain, while horizontal price fixing refers to price fixing between competitors in the marketplace.

<h3>Predatory pricing: What is it?</h3>

In a predatory pricing system, prices are artificially depressed in an effort to eliminate rivals and establish a monopoly. Short-term price reductions may be advantageous to consumers, but if the plan is successful in reducing competition, prices will rise and the number of options will decrease.

<h3>Vertical pricing control: what is it?</h3>

Agreements by manufacturers to set a minimum or maximum resale price are examples of vertical price-fixing arrangements.

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