Price Fixing Between Competitors
Highway Motel and Motel Vagabond are the only two hotels on Route 1A. Anticipating a severe snowstorm that may render the highway impassable, the two innkeepers agree to raise their room rates from $39.00 to $149.00 per night. Why does this scenario constitute price fixing?
AThe companies are attempting to create a monopoly.
BAll vertical agreements are illegal.
CThe competitors are conspiring to raise prices.
DThe innkeepers are engaging in standard market competition.
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