CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which of the following statements is correct? In the United States ______

A. it is illegal to practice price discrimination and/or price fixing.
B. it is illegal to practice price discrimination but not price fixing.
C. it is illegal to practice price fixing but not price discrimination.
D. both price fixing and price discrimination are legal.
Correct Answer: C

Price fixing is illegal but price discrimination is not.

User Contributed Comments 10

User Comment
danlan What is price fixing?
gord from google: "Agreement among competing vendors to sell at the same price"
jerylewis thanks!
bobert AKA collusion
dnoyelles like a cartel almost.
MMattioli opec
StanleyMo From gord i find out google is dominate (monopoly) at search engine world.
DannyZhou Google should belong to competition called oligopoly.
YOUCANDOIT price fixing will be talked about in the next reading regarding oligopolies....when firms restrict output and agree upon a mkt. price which leads to an inefficient allocation of resources.
YOUCANDOIT ...the agreed upon price will also be higher than the the efficient equilibrium price and will maximize industry profits which are shared amongst all firms equally (that is unless firms decide to cheat and dishonor the agreement)
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