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BP, Amoco and Super America all operate gas stations within a block from each other. Their price for gas is almost always the same. The
BP, Amoco and Super America all operate gas stations within a block from each other. Their price for gas is almost always the same. The government brings a horizontal price fixing antitrust action against them. Select the best argument to defend against the antitrust action. Question 45 options: 1) The three never met to discuss price. They each have to match the market leader; however, to remain competitive. 2) The stations actually did meet to agree to fix price; however, each individual destroyed all evidence of the meeting and is willing to lie under oath to protect themselves so there is no way the government can prove an agreement to fix price. 3) The rule of reason would apply to horizontal price fixing and all charging the same price is good for consumers because it reduces confusion in the marketplace. 4) The three agreed to charge the same price to improve the safety and efficiency of driving in the area. It is unsafe to cross the street to get a cheaper price and it hinders the efficient flow of vehicle traffic to have cars crossing streets
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