Which term describes an agreement among competitors to fix prices or rig bids?

• A. Price fixing
• B. Collusion
• C. Oligopoly
• D. Monopoly

Answer: (A)

Price fixing is the precise term for an agreement among competitors to set prices, or to rig bids, rather than competing with each other on price. This behavior is a clear form of collusion, aimed at removing ordinary market competition and keeping prices artificially high or securing favorable bid outcomes. While collusion describes the broad idea of cooperating to defeat competition, the specific act described—agreeing to fix prices or rig bids—falls under price fixing. An oligopoly refers to a market structure with a few dominant firms, not the act itself, and a monopoly describes a single seller in the market. Therefore, price fixing best captures the described conduct.