Both Lemon Light,Inc

Both Lemon Light,Inc.and Orange Mist Corporation are soft drink distributors in Capital City.The soft drink business is highly competitive,profit margins are razor thin,and both companies are on the brink of bankruptcy.To save themselves,they agree to not sell soft drinks at a price below $3 per six-pack.This is a fair price; it allows both of them to make a fair profit; and the customers still get a relatively inexpensive drink.This action by Lemon Light and Orange Mist is:

A) Legal,because they set a fair price.
B) Legal,because they were on the brink of bankruptcy.
C) Legal,because they did not set an absolute price,but only set a minimum price.
D) Illegal,because it is horizontal price fixing.
E) Illegal,because it is vertical price fixing.

Correct Answer:

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