Question

Crop Yield Corporation, Dextros Harvest Company, and Equip Enterprises, Inc., are farm-equipment distributors that control 90 percent of the market for their products in a certain geographic area. The firms agree to sell their products for the same prices. This is__________

Answer 1

Answer:

price fixing agreement

Explanation: Price fixing is an agreement (written, verbal) among competitors to sell a product, service, or commodity only at a fixed price. These competitors who agree to this agreement  are responsible for raising, lowering, or stabilizing prices according to their  competitive terms. Generally,  consumers make choices to what products and services to buy, and they expect that the price should be determined freely on the basis of supply and demand, not by an agreement among competitors.  in this type of case, prices tend to be higher which is a major concern for the consumers.