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Explain the differences between horizontal and vertical price fixing..

Q: What is horizontal and vertical price fixing?

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Explain the differences between horizontal and vertical price fixing..

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Price fixing is illegal within the United States, Australia and the European Union

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Price fixing can only be collusion if it happens due to all the firms in an oligopoly system come together to decide the price.

Price fixing can also be implemented by government (especially in agriculture sector), in which case is not considered a collusion.

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In the situation of "price fixing" the consumer generally will have to pay more for a product.

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Price fixing is when companies that have the same products in common come together to agree to a set price. Price fixing is fair and is in the best interest of being socially responsible by protecting the market from becoming a monopoly.

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