Security Services, Inc. and Redline Protectors were the two predominant provider
ID: 448476 • Letter: S
Question
Security Services, Inc. and Redline Protectors were the two predominant providers of home alarm systems in the Dallas area. They had become the two big businesses after the smaller competitors left the market that was becoming dominated by Security and Redline. One of the smaller competitors complained that Security and Redline seemed to always change their product pricing to the same new level, at the same time, moving prices down to clear out competition, then raising prices, but always at about the same time.
Which of the following is most correct about this situation?
While illegal antitrust activity might be inferred from the behaviors noted here, an express agreement to fix prices at a certain level is the only way to meet the required level of proof.
Because prices are dictated by the market economy, it is common for companies to have the same price, so identical pricing and changes at the same time will not suggest an antitrust violation.
A meeting of the minds between the competitors can be inferred by demonstration of conscious parallelism.
None of the above is true.
A.While illegal antitrust activity might be inferred from the behaviors noted here, an express agreement to fix prices at a certain level is the only way to meet the required level of proof.
B.Because prices are dictated by the market economy, it is common for companies to have the same price, so identical pricing and changes at the same time will not suggest an antitrust violation.
C.A meeting of the minds between the competitors can be inferred by demonstration of conscious parallelism.
D.None of the above is true.
Explanation / Answer
B.
Since costs are managed by the business sector economy, it is normal for organizations to have the same value, so indistinguishable estimating and changes in the meantime won't recommend an antitrust infringement.
REASON:Because of the equivalent costs there are strength in the business sector.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.