Question

Articulate the meaning of "price fixing"? What is objectionable about price fixing? Have your own experience, have you ever suspected or encountered the practice of price-fixing in Canada?

Answer 1

Answer - Price fixing the mechanism whereby the firms in the market may come together and mutually decide upon a price that has to be charged for a good or service. The objectionable fact about this is that the sellers coming together fix the price of good above the equilibrium price so that they can earn more and more revenue. These kind of products do not have many substitutes due to which the consumers have to buy at higher price. This is an unethical practise. Fortunately , I have never came across any such incidence of price fixing in my country.