Recently, some executives for highway construction companies agreed to stop competing with each other on price and to meet every three months to decide their price for the next quarter. In this situation: A. the Sherman Act has been violated. B. the Robinson-Patman Act has been violated by price discrimination. C. the executives are exercising their right to free trade. D. the unfair trade practice acts have been violated. E. as long as prices don't increase—the executives have done nothing wrong.

Business · College · Sun Jan 24 2021

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The scenario you described, where executives from highway construction companies agreed to stop competing on price and meet regularly to decide prices for the next quarter, raises concerns related to antitrust laws and collusion. Among the options provided:

A. the Sherman Act has been violated.

The Sherman Antitrust Act prohibits agreements that restrain trade, including price-fixing schemes where competitors agree to set prices rather than allowing market competition to determine prices. Such agreements to fix prices among competitors are considered anticompetitive behavior and are illegal under antitrust laws like the Sherman Act.

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