What type of restrictive business condition is demonstrated by the following scenario:
Companies W, X, Y, and Z are all major corporations that sell flying cars. W, X, Y, and Z agree to set their flying car prices a certain range between two price points so that they make it difficult for other companies to enter the flying car market.
Explanation
Answer: A - The scenario demonstrates an oligopoly, in which a group of producers restrict the market for a particular good or service. An oligopoly is essentially the same thing as a monopoly or duopoly; they differ in regard to the number of parties involved (a monopoly consists of competition-restricting acts committed by one party; a duopoly consists of two parties). A real world example would be the accused oligopoly-Apple, Simon & Schuster, Hachette, Penguin, Macmillan, and HarperCollins-that was sued by the U.S. Justice Department in early 2012 for price-fixing in the e-book market.
