Oh, once in a while they go on sale for a day or two but i suspect they are culling out old bananas...can anybody tell me if what i just asked constitutes "price fixing"??
2006-09-03 17:25:01 · 8 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
As long as Exxon / Mobile doesn't creep into this conversation, I'll give you my two cents worth.
Basically, Safeway stores can charge 79 cents or, for that matter, anything they want for their bananas - provided you have the option of going down the block a ways and shopping at Sam's Deli where the bananas are only 59 cents a pound. If, however, Safeway goes on down to Sam's Deli and shows him how much more profit they both could make if Sam would only sell his bananas at 79 cents like Safeway does.
Sam does a little math and sees an opportunity here to increase his banana profit significantly and agrees to charge the same as Safeway does. After all, the customer won't have a lower price option anymore.
Now that's price fixing, plain and simple.
2006-09-03 17:45:13 · answer #1 · answered by LeAnne 7 · 0⤊ 0⤋
No, it does not. It would be price fixing if, say, all the major supermarkets got together and decided to charge $0.79 a pound for bananas -- which would suggest that if they hadn't all gotten together and "fixed" the price at $0.79 per pound, the cost of bananas would be lower due to market forces. If the "natural" price of bananas in a free market was already $0.79/pound, there would be no need for them to fix the price. If the "natural" price was more than $0.79/pound, they wouldn't fix the price below what they could otherwise charge. So the obvious conclusion is that the "natural" price is *less than* $0.79/pound, but as long as all the sellers agree amongst themselves to keep the price artificially high, there's little anyone can do about it. Except for making this illegal and prosecuting.
2006-09-03 17:34:44 · answer #2 · answered by lehrer_fan 2 · 0⤊ 0⤋
Safeway can charge whatever they want for anything in any of their stores around the country...
Price fixing is where Safeway and all the rest of the major bananna suppliers in town get together and agree that they will all charge a dollar a pound for banannas and if you want and bananna there is no competition so you have to pay a dollar a pound..
2006-09-03 17:32:44 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Yea, well look at gas! There isn't 3 cents between any of the stations, except those who price fix worse! The ones off of the interstates!
How about cereal? Three companies make about 95% of it, and it is the same price everywhere! There is no Free Enterprise anymore! You can't compete with those conglomerates who have been allowed to buy up the market, in violation of anti trust laws!!
2006-09-03 17:33:27 · answer #4 · answered by cantcu 7 · 0⤊ 2⤋
Read this.
"Price fixing is an agreement between business competitors selling the same product or service regarding its pricing. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to windfall profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. "
http://en.wikipedia.org/wiki/Price_fixing
2006-09-03 17:30:42 · answer #5 · answered by paintballer391 2 · 1⤊ 0⤋
Price fixing is when one company gets together with their
competitor and "Fix" the price on a product all the same price.
2006-09-03 17:30:49 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Thought is a perception in the form of electro-chemical reactions which give the thinker the feeling of existence and reality. HAHAHAHAHAHAHA!!! Just a thought............ :)
2016-03-26 21:21:29 · answer #7 · answered by Anonymous · 0⤊ 0⤋
no, not at all.
2006-09-03 17:31:14 · answer #8 · answered by mixwithanything 5 · 0⤊ 0⤋