Jay Farnswood is the president of a local group of real estate agents. At their monthly luncheon meeting, Farnswood stood and told his colleagues that he simply could not survive by charging the 5 percent commission rate and noted, "I don't know what the rest of you are going to do, but I am going to charge 6 percent commission on all my listings starting today."

Farnswood's statements:

a. constitute price-fixing.

b. only reflect his intentions; there is no agreement to fix prices.

c. constitute an attempt to monopolize.

d. none of the above

Question

Business

Kian Nicholson

30 November, 15:06

Jay Farnswood is the president of a local group of real estate agents. At their monthly luncheon meeting, Farnswood stood and told his colleagues that he simply could not survive by charging the 5 percent commission rate and noted, "I don't know what the rest of you are going to do, but I am going to charge 6 percent commission on all my listings starting today."

Farnswood's statements:

a. constitute price-fixing.

b. only reflect his intentions; there is no agreement to fix prices.

c. constitute an attempt to monopolize.

d. none of the above

+5

Answers (1)

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Mattie Morse · Answer 1

Answer: Option A

Explanation: Price fixing is an arrangement between competitors that increases, decreases, or flattens rates or competing terms. In particular, the antitrust laws demand that each corporation, without negotiating with a competitor, set prices and other conditions by itself.

Price fixing applies not just to costs, but also to certain words that influence customers ' values, such as delivery charges, guarantees, rebate schemes, or levels of funding.