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Price fixing is when two or more people or businesses agree to set a price for a product or service instead of letting the market determine the price. This is illegal and can lead to higher prices for consumers and less competition in the marketplace.
A working example of price fixing could be if two competing real estate agencies in a small town agree to charge the same commission rate for their services, even though the rates would normally vary based on the services provided and market demand. This agreement would be considered price fixing and is illegal under antitrust laws.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Price fixing is quite a trick,
When businesses agree on a price pick,
It may seem fair and cozy knit,
But it's illegal and we won't permit.
Two agencies in town,
Agreed to charge rates that don't frown,
The market demand should be the crown,
But instead they agreed to not let it weigh down.
Oh no, no, no, that won't do,
It limits options, and costs more too,
Competition's good, we need a few,
To keep prices fair for me and you.