Price-fixing

A) creative destruction view of competition.
B) idea that competition leads to greater economic efficiency than does a monopoly.
C) view that nonprice competition should be strictly regulated by government.
D) view that all negative externalities should be eliminated by government action.

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them be determined naturally by supply and demand.

Economic Efficiency

A state in which resources are allocated in a way that maximizes the production of goods and services at the lowest cost, while achieving the highest possible welfare or utility.

Negative Externalities

Costs experienced by third parties due to the actions of others that are not reflected in market prices.