4. Give an example of an illegal or unethical price strategy. Explain why it is a questionable practice. (2 points)
An example of an illegal or unethical price strategy is price fixing. Price fixing is an agreement between competitors to set the price of a product or service at a certain level, which is often higher than the market price. This practice is illegal because it violates antitrust laws, which are designed to promote competition and prevent monopolies.
Price fixing is a questionable practice because it harms consumers by limiting their choices and forcing them to pay higher prices. It also harms smaller businesses that cannot compete with larger companies that engage in price fixing. Additionally, price fixing can lead to a lack of innovation and decreased quality of products or services, as companies have no incentive to improve their offerings if they can maintain high prices through collusion. Overall, price fixing is an unethical and illegal practice that harms both consumers and the market as a whole.