Tokuji's monthly net income will rise to $650 the following month. Tokuji can increase his discretionary spending by $20 if he raises his monthly savings to $110.
How is total net income calculated?If your total expenses are greater than your total revenues, you have a negative net income, also known as a net loss.
Tokuji would save approximately $110 from his monthly income, or 17% of his total monthly income, if he made the decision to do so.Therefore, Tokuji can increase his spending in the same proportion using the money he has saved. As a result, he would be able to spend approximately $20 to increase his discretionary spending by approximately 17%.To learn more about net income here:
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A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability
$2,385. A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation By definition, a tax liability is simply the amount of money.
owing by a business or person to a taxing entity, such as the Internal Revenue Service (IRS). Set it up like this to find the answer to this;mIf $1000 has a taxable value of 4.5 mills, how much would 530,000 pay If $1000 = 4.5 so $530,000's tax obligation would be equal to (530,000 * 4.5) / 1,000. = 2,385,000/ 1000 = $2,385 The amount that a person, company, or other organization owes to a federal, state, or local tax body is known as their tax liability. In general, you owe taxes when you earn money or make gains off of the sale of an investment or other item.
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Police officers break into a home unlawfully to look for evidence. This is an example of the violation of
A. substantive due process.
B. the rights of the accused.
C. procedural due process.
D. the right of association.
Police officers illegally enter a house to search for evidence. This is an example of the violation of procedural due process.
What do you mean by procedural due process?
Before taking away someone's life, liberty, or property, government officials must follow fair procedures, according to a legal notion known as procedural due process in the United States. When the government wants to take away one of those interests from a person, procedural due process demands that the government at the very least give the person notice, a chance to be heard, and a decision made by an impartial decisionmaker. The Due Process Clauses of the Fifth and Fourteenth Amendments to the United States Constitution mandate procedural due process.Contrarily, procedural due process investigates whether the government has adhered to the correct processes for denying someone their life, liberty, or property.
So, The correct option is C.
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Burkhardt Corp. pays a constant $14.30 dividend on its stock. The company will maintain this dividend for the next 7 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price
Answer:
TOTAL CURRENT PRICE OF SHARE: $67.38
Amount: year pvf at 11% PV
$14.30 year 1 0.90090 $12.88
$14.30 year 2 0.81162 $11.61
$14.30 year 3 0.73119 $10.46
$14.30 year 4 0.65873 $9.42
$14.30 year 5 0.59345 $8.49
$14.30 year 6 0.53464 $7.65
$14.30 year 7 0.48166 $6.89
TOTAL CURRENT PRICE OF SHARE: $67.38
Explanation:
A stock price is the price of one of a company's many shares available for sale. Simply put, the stock price is the highest price someone is willing to pay for the stock or the lowest price at which it can be purchased. Analysts use the random walk approach to explain the movement of asset prices, especially stock market stock prices, in economic and financial theory. This methodology is based on the premise that investors are neutral and unbiased and always assess the value of assets based on future expectations. In such circumstances, prices are subject to all available information and are subject to change only when new information is released.
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the fourth industrial revolution is where advances in _______ are radically shifting the way we work, live, learn, and interact with each other.
The fourth industrial revolution is where advances in technology are radically shifting the way we work, live, learn, and interact with each other.
So, the correct answer is technology.
We are at the start of the Fourth Industrial Revolution, a new period that expands and builds on the effects of digitization in novel and unexpected ways. Technologies are emerging and having an impact on our lives in ways that suggest this is the case. Therefore, it is important to take some time to think about the specific changes we are going through and how we can ensure that they benefit the majority rather than a select few, both collectively and individually.
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What is the term for the proportion of funds invested in each of several investment alternatives?
A) spreading
B) shorting
C) margin buying
D) asset allocation
E) diversification
Asset allocation is the term for the proportion of funds invested in each of several investment alternatives.
The process of allocating your investments among various assets, including stocks, bonds, and cash, is known as asset allocation. The choice of how to allocate your assets is a private one. Depending on the time you have to spend and how much risk you can bear, the allocation that is ideal for you changes over the course of your life.
As a general rule, the suggested allocation has historically been 40% bonds and 60% stocks. The poor rate of return on bonds today, however, has led some financial experts to propose a new benchmark of 75% equities and 25% bonds.
The process of allocating your investments among various assets, including stocks, bonds, and cash, is known as asset allocation. The choice of how to allocate your assets is a private one. Depending on how you are feeling at a given period in your life.
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Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week
In this case, the corn producer will produce 24 million bushels per week, while the jeans producer will produce 64 million pairs per week.
How much does country manufactures per week?Manufacturing is the process of creating goods by hand or machine that are then sold to customers. Raw materials or component parts of a larger product may be used in manufacturing. Manufacturing is typically done on a large-scale production line using machinery and skilled labour.Given that,
4 million hours of total labour
The number of bushes that produce in one hour is six.
total number of bushes produced = 6*4 = 24 million
∴ we get the corn - producing country will produce 24 million bushels per week.
Now,
4 million hours of total labour
The number of pairs produced in one hour is 16
total number of bushes produced = 16*4 = 64 million
∴ The country that manufactures jeans will make 64 million pairs per week.
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Commercial food innovators spend several months perfecting flavors using test kitchens and expert taste testers, and then even more time creating brand names, logos, and packaging. As marketers, using research to develop food innovation flavor profiles requires our _________ skills while using creativity to develop its branding for the marketplace requires our _________ skills.
As marketers, using research to develop food innovation flavor profiles requires our chemistry skills while using creativity to develop its branding for the marketplace requires our technical skills.
The flavor profiles of a food or beverage can be complex and varied, depending on the ingredients used. For example, a cup of coffee can have a flavor profile that is sweet and nutty, with notes of chocolate and caramel. A glass of red wine can have a flavor profile that is earthy and fruity, with hints of oak and spice.
A juic y steak can have a flavor profile that is savory and smoky, with a hint of garlic and herbs. A piece of dark chocolate can have a flavor profile that is rich and sweet, with notes of cocoa and nuts.
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39. If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be __________. *
(Nominal GDP minus Real GDP) x 100 is the GDP price deflator. When the nominal GDP is lower than the actual GDP, the GDP deflator is negative, which indicates that the country is experiencing deflation.
Nominal/Real x 100 is the formula used to compute the GDP deflator. The GDP Deflator for 1980 in the aforementioned example is 100 ($500/$500 x 100 = 100). GDP deflator is always set to 100 for the base year. The 2017 GDP deflator is 342.86 ($3000/$875 multiplied by 100 = 342.86). Real GDP is typically calculated by multiplying nominal GDP by the GDP deflator (R). The deflationary figure, for instance, is 1.01 if an economy's prices have risen by 1% since the base year. Real GDP is computed as $1,000,000 / 1.01, or $990,099, if nominal GDP was $1 million.
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Explain how experience performing accounting research could prepare you for a career in the profession
Performing accounting research equips individuals with essential skills for interpreting complex standards making informed decisions, providing accurate financial reporting, and ensuring compliance with laws.
Additionally, research experience allows an individual to develop critical thinking skills, which are essential for solving problems and making decisions in the accounting profession. It also helps in understanding the current trends and issues that are relevant to the profession, which can be valuable when providing advice to clients or making strategic business decisions.
Research experience also helps to develop strong analytical skills, which are essential for understanding financial statements, identifying potential issues, and making recommendations for improvement. Furthermore, research experience can also provide an understanding of the different research methods and techniques used in accounting, which can be used to evaluate financial data and make informed decisions.
In summary, experience performing accounting research can provide an individual with the necessary knowledge, skills and analytical abilities to be successful in the accounting profession. It helps in understanding the complex accounting standards and regulations, developing critical thinking and analytical skills, staying updated with current trends and issues and making informed decisions.
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Why are there more mixed market economies than command?
Mixed market economies are more prevalent in today's globe because more economic systems are designed to give producers and consumers the flexibility to make economic decisions.
Why do most economies have mixed economies?When a government intervenes to stifle free markets by establishing state-owned firms (such public health or education systems), restrictions, subsidies, tariffs, and tax policies, a mixed economy may result.
Because they couldn't go out of business, government-owned enterprises were less inclined to provide high-quality products at reasonable prices under a command economy. Private persons had no motivation to look for new ways to satisfy the needs and wants of consumers because they could not own the means of production.
When the stability conditions necessary for a functioning command system, which had existed in the Soviet Union for 70 years, ceased to exist, the economy collapsed. The equilibrium of a game of strategy played by a dictator and other players can be used to define these requirements.
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What is NOT true of chicken and beef production? * 1 point a. More than seven times as much grain is required to produce 1 kg of beef than 1 kg of poultry. b. More than 1 calorie of energy is needed to produce 1 calorie of beef or chicken. d. The energy content of 1 kg of beef is equal to the energy content of 1 kg of poultry. d. Grain fed poultry and cattle are both primary consumers.
Option d, The energy content of 1 kg of beef is equal to the energy content of 1 kg of poultry.
The energy content of 1 kg of beef is generally greater than the energy content of 1 kg of poultry. Beef contains more fat, which has a higher energy content than protein. Additionally, it takes more energy to produce a kilogram of beef than a kilogram of poultry because of the differences in the feed and resources required to raise cattle versus chickens.
The other options are true: More than seven times as much grain is required to produce 1 kg of beef than 1 kg of poultry. More than 1 calorie of energy is needed to produce 1 calorie of beef or chicken. Grain-fed poultry and cattle are both primary consumers.
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Cost is a major factor for consumers when purchasing health products. Please select the best answer from the choices provided. T F Mark this and return
The statement "cost is a crucial issue for customers when purchasing health products" is correct. The sort of health product purchased will be determined by the consumer's purchasing power and the product's price. Customers are drawn in by lower prices.
What is meant by purchasing power?The amount of products and services that may be purchased with a unit of cash is referred to as purchasing power. For example, if one took one unit of cash to a store in the 1950s, one could buy a higher number of products than one could now, showing that the currency had greater buying power in the 1950s.
If one's monetary income remains constant while the price level rises, the buying power of that income decreases. Inflation does not automatically entail a decline in one's buying power, as the latter may grow faster than the price level.
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Universal Containers wants to track Invoice Payments on an Opportunity Related List. Only the Finance Team should see this Related List; however, all Users should be able to view Invoice Payment reports. How should the System Administrator implement this requirement?
O Set the Invoice Payment Org-Wide Sharing Settings to Private.
O Only grant Finance access to the Invoice Payment object.
O Build an Invoice Payment report with a Running User of Finance.
O Create a new Page Layout and Profile for the Finance Team
Option D is correct, It should System Administrator implement this requirement by creating a new Page Layout and Profile for the Finance Team.
International distributor of containers, Universal Containers is expanding quickly. The business manufactures all different types of containers, including small postal containers, special equipment packing, and huge cargo shipping containers. The Salesforce Administrator certificate is intended for those with Salesforce administrator expertise who are always seeking new methods to help their organizations make the most of both existing and emerging features and capabilities. Establishing an Org set up by
Describing the information that may be found in Setup's company information section. List the different UI elements that an administrator can modify.Put each UI feature to use in typical circumstances.Put into practice typical scenarios involving business information.To learn more about invoice payments, click at:
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Which one of the following is not a way to grow a company's sales volume in the Internet segment in the Europe-Africa region? Deliver online orders for branded footwear within 2-3 business days instead of the standard 5-7 business days O Win sufficient celebrity endorsement contacts to achieve celebrity appeal ratings that are higher than the industry average in the Europe Africa region O Provide free shipping to online buyers O Offer branded footwear that has a higher
Win sufficient celebrity endorsement contacts to achieve celebrity appeal ratings that are higher than industry average in Europe Africa region is not way to grow company's sales volume in Internet segment in Europe-Africa.
What is an endorsement?A signature endorsing the legal transfer of a negotiable instrument between parties can also be an update to a contract or document, such as a life insurance policy or a driver's license. A public declaration of support for a subject, object, or service is referred to as an endorsement. The word "endorsement" has a variety of meanings, but many of them include acceptance or consent. In business or legal situations, an endorsement is a signature or a stamp that signifies approval of a payment, a fund transfer, or another financial transaction. An endorsement is a statement of agreement with or support for something or someone; the endorser may or may not get compensation.
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What you give up in the future to make a purchase today?
The answer to this question depends on the purchase you are making. Hence, I am giving answer to the best of my knowledge. Generally speaking, if you make a purchase today, you are giving up the ability to use that money for something else in the future.
You are also giving up the potential gains or savings that may have been earned by waiting to make the purchase. For example, if you make a purchase today, you are giving up the potential savings that may have been earned through interest or other investments.
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When cyclical unemployment increases and other things remain the same, ______.
A. the natural unemployment rate does not change
B.the natural unemployment rate decreases
C.the amount of frictional unemployment increases
D. the amount of structural unemployment increases
When cyclical unemployment rises while other factors remain constant, the natural unemployment rate does not change.
Cyclical unemployment is the part of overall unemployment caused by economic ups and downs.
What is the natural unemployment rate?
The ratio, or the state of full employment, in proportion to the workforce that is still unemployed is referred to as the natural rate of unemployment. The natural unemployment rate is determined by an economy's supply side, which includes economic institutions and production capabilities. The natural rate of unemployment is also known as the combination of structural and frictional unemployment that occurs in an efficient and thriving economy where the labor and resource markets are mostly in equilibrium.
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Americans’ confidence in government institutions in the United States has __________.
a. fluctuated depending on foreign policy commitments
b. been largely dependent on political party affiliation
c. generally decreased over time
d. fluctuated depending on who is in office
Americans’ confidence in government institutions in the United States has
generally decreased over time.
Are government institutions branches?Makes laws; legislative (Congress, comprised of the House of Representatives and Senate) Executes legislation as an executive (president, vice president, Cabinet, most federal agencies) Judicial: Supreme Court and other courts evaluate laws. The Congress, the Presidency, the Bureaucracy, and the Federal Courts are examples of national governing institutions. USA.gov provides an even more comprehensive database, including 268 Cabinet divisions and 137 autonomous executive agencies. The phrase "no authoritative list of government agencies" is accurate.
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An investor purchased a corporate bond for 97 3/8. If the bond is sold for 99 3/8, the investor has a profit of
The investor realized a profit of 1.875 percent of the purchase price of the bond. When an investor buys a corporate bond at 97 3/8 and then sells it at 99 3/8, the investor will make a profit of 1 7/8 points. This translates into a return of 1.875 percent.
The points system is a convenient way to measure the value of bonds and other investments. It allows investors to calculate their profits and losses quickly and easily. The points system is a useful tool for investors to track their investments and evaluate their returns. By factoring in the bond's purchase price and then subtracting the sale price, investors can easily calculate how much they've made or lost on the investment. This makes it easier for investors to decide whether to continue investing in a particular bond or investment.
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What is an example of an irregular or variable expense?
An example of an irregular or variable expense is home repairs. These can range from small fixes like changing a lightbulb to major repairs such as replacing the roof.
The cost of these repairs can vary depending on the type and extent of the repairs needed.
A cost that changes in accordance with a certain type of activity is called a variable expense. For instance, the cost of direct materials rises as sales do. Commissions, billable labour, piece rate labour, and credit card fees are examples of additional variable costs. Few costs in a firm are actually changeable.
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Which of the following provides the most accurate explanation of how increased media choices have affected partisan polarization
People are more likely to choose news outlets that support their ideological beliefs because there are so many different news sources available to them.
What is meant by partisan polarization?As a result of the variety of news sources available to them, people are more likely to select media that support their ideological viewpoints.
Voters arrange themselves into parties that align with their ideologies in a process known as partisan sorting in politics. Political polarization, which occurs when partisans adopt ever-more-extreme stances, is different from partisan sorting.
is frequently held accountable for escalating political partisanship and ideological divisiveness. Political Polarization Political polarization occurs when a person's identification with a specific political party makes their opinion on a given issue, policy, or individual more likely to be rigidly defined.
The complete question is:
Which of the following provides the most accurate explanation of how increased media choices have affected partisan polarization?
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Yesterday in class we discussed 4 Era’s of Marketing and how the situation of the world at that time impacted businesses, specifically, marketing. The assignment is to choose ONE of the following era’s and write a letter to a loved one as if you were just starting a job during the marketing era of your choice. In your letter you should mention what is happening in the world to cause this shift in marketing, and what your role is going to be. You can choose which company you are working for: maybe you are starting a job on the assembly line, or becoming a door to door salesperson! Be creative and have fun with it. If you want, try to imagine what the world was like during that time period and use language or current events to make your letter sound more believable.
The letter should be at least 2 paragraphs long and should display that you understand how businesses are using marketing in this new era.
4 Eras:
Production Era (1800’s - 1920)
Selling Era (1920s - 1950s)
Marketing Era (1950s - 1990s)
Value Era ( 1990s - Current )
You own a portfolio that is 25 percent invested in Stock X, 40 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively. What is the expected return on the portfolio
Expected return on the portfolio is 12.95%
To find the expected return on the portfolio, you need to calculate the weighted average of the expected returns of each stock based on its percentage in the portfolio. This can be done using the following formula:
Expected return on portfolio = (Weight of Stock X x Expected return of Stock X) + (Weight of Stock Y x Expected return of Stock Y) + (Weight of Stock Z x Expected return of Stock Z)
Plugging in the values:
Expected return on portfolio = (0.25 x 10%) + (0.40 x 13%) + (0.35 x 15%)
Expected return on portfolio = 2.5% + 5.2% + 5.25%
Expected return on portfolio = 12.95%
So, the expected return on the portfolio is 12.95%.
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When the Petersons' planner is gathering data during the financial planning process, financial goals should be quantified in dollar amounts and which of the following: a. established time frames
b. by type of goal
c. by ownership
d. order of priority
When the Petersons' planner is gathering data during the financial planning process, financial goals should be quantified in dollar amounts and established time frames.
Instead of being generic in nature, while supporting the client in developing realistic objectives, the planner should help clarify financial goals so that they are quantifiable in dollar amounts and have specified time horizons. Aside from risk tolerance, the time horizon is perhaps the most significant issue to consider when determining what securities to invest in, how much to invest in, and when to invest. The time horizon for any investment will be determined by the investor's aims and circumstances. Those with limited time horizons, for example, may be better suited picking less volatile and more liquid investments.
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Which of the following lists is included in what economists call "money"?
a. cash
b. cash and stocks and bonds
c. cash and stocks and bonds and real estate
d. cash and stocks and bonds and real estate and all other assets
Cash is included in what economists call "money". Therefore option A is correct.
What is cash?Bills, coins, bank balances, money orders, and cheques are all examples of cash. Cash is used to pay off debts or to buy products and services. Post-dated cheques and notes receivable are examples of items that do not fit the definition of cash. Since cash balances can be expressed in the computer records for investment accounts, most kinds of money are electronic rather than in the form of bills and coins.
Since the reporting sequence is arranged according to liquidity and cash is the most liquid asset, it appears first on the balance sheet. Cash equivalents, a similar accounting word for assets that are easily convertible into cash, is used to describe these assets.
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An S corporation Multiple Choice is similar to a partnership in that it carries unlimited liability. is a separate legal entity that is treated like a normal corporation. has all the organizational benefits of a corporation and its income is only taxed once. All of the options
C) An S corporation has all of the advantages of a corporation in terms of organization, but its income is only subject to one tax.
What advantages does an S corporation offer?A major advantage of an S corporation is that, regardless of its tax status, it protects owners from limited liability. The owners' personal assets are protected from the claims of business creditors under limited liability protection, regardless of whether the claims stem from contracts or litigation.
What is an S corporation's tax advantage?An owner of an S corporation can reduce their self-employment tax liability and generate wages-paid deductions that will reduce the amount of corporate income by using a combination of dividends and salary.
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You currently work for the Lexington Legends, a minor league baseball team. The team's attendance is down this year even though the team is playing
better than it ever has before. What part of the promotional mix would you suggest the team adjust in order to increase attendance?
Multiple Choice
- position
- promotion
- place
- product
- price
The correct response is b) promotion. Attendance in Minor League Baseball (MiLB) is low.
Promotion includes a wide range of activities aimed at increasing public awareness or advancing a product. When referring to a career, promotion is raising a worker's rank or position within a hierarchical system. An employee's rank or position in an organizational hierarchy system is elevated by a promotion. Promotion could be an employee's reward for excellence, or a favorable evaluation. These include event marketing, exhibits, and trade shows, as well as direct marketing PR, advertising, and sales promotion. The main advantage of a promotion is that it makes a business stand out from its competitors. Without competition, no company would ever need to run promotions. To continue doing business with customers, you must stay one step ahead of your rivals.
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In supplying private-label footwear to chain retailers, the sizes of a company's margins over direct costs (as reported on p. 6 of each issue of the FIR) should be viewed as O how much each pair of private-label footwear sold adds to the company's pretax profits, assuming that the company's margins on branded footwear were sufficient to cover all administrative expenses and all interest costs. O cash that can be used to pay down long-term debt or increase dividend payments or be deposited in the company's retained earnings (to strengthen the company's balance sheet) O the net profit a company earns on each pair of private-label footwear sold. O the gross profit a company earns on each pair of private-label footwear sold. O how much the company received from each pair of private-label footwear sold over and above materials costs and direct labor costs-- these dollars are automatically deposited in the company's retained earnings account and help boost the company's credit rating. Copying, redistr buting, or website posting s expressly proh bited and constitutes copyright violation Copyr ght 2018 by Glo-Bus Software, Inc
How much money the business had available from each pair of private label shoes sold that could be utilized to assist cover administrative costs, interest costs, and help the business make a pre-tax profit.
Costs associated with ongoing business operations are known as administrative expenses. Both fixed and semi-variable administrative expenses are possible. Typical examples include rent, utilities, tools, supplies, insurance plans, pay, compensation, and legal assistance. Operating costs, commonly referred to as selling, general, and administrative (SG&A) costs, are what a business must pay. Rent and utilities, sales and accounting, management and administrative pay, and marketing and advertising are among them. Custodian fees, issuance charges, and interest on obligations of the Financing Corporation are all considered non-administrative expenditures. Whatever the level of a company's revenue, fixed costs remain constant. generally included in operating costs like Sales General and Administrative (SG&A). Rent, utilities, salary, and benefits are examples of things that are typically seen as fixed costs.
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End of Chapter Problem Suppose the government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases. In the accompanying diagram, shift the AD, LRAS, and/or SRAS curves and move the equilibrium point to its new position to demonstrate how the economy moves from one long-run macroeconomic equilibrium to another.
Line AD shifts to the right, Line SRAS moves shifts to the left Point E moves upward to new intersection.
What is Spatially resolved acoustic spectroscopy (SRAS)?The study of crystalline or polycrystalline materials frequently makes use of the non-destructive acoustic microscopy microstructural-crystallographic characterization technique known as SRAS (spatially resolved acoustic spectroscopy). The method can provide details about the material's crystallographic alignment and internal structure. Traditionally, diffraction methods from electron microscopy, such EBSD, have been used to get the data that SRAS provides. In 2005, the method was patented.The surface acoustic wave (SAW) velocity is measured by SRAS over a specimen. The SAW velocity is a function of the material state, which includes elements like temperature, stress, crystallographic orientation, and elastic constants.Two lasers are utilised in SRAS measurements, as is common in laser ultrasound methods, with one laser used to create the acoustic waves and the other to detect them afterwards.Learn more about SRAS refer to :
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How does government protect private property in a mixed economy?
Governments may impose taxes on the private sector in an effort to redistribute wealth, and they may also utilize tax income to further social objectives. In mixed economies, the government typically intervenes through fiscal stimulus, trade protection, subsidies, targeted tax credits, and public-private partnerships.
What does " government typically intervenes" mean ?
Governmental intervention is the deliberate meddling by a government in a country's economy through regulatory actions. It represents a situation in which a government actively swayed decisions made by individuals or groups. Government involvement is necessary because of the perceived flaws and inefficiencies of the market. A government makes and upholds laws with the goal of advancing welfare or pursuing certain social and economic goals. These rules aim to achieve results that.
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If the major airline companies colluded to make consumers pay an additional $50 to be able to carry on luggage, this would be an example of ______
This would be an example of price fixing. A price fixing agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilise prices or price levels is referred to as a price fixing agreement.
Horizontal price fixing occurs when competitors agree to raise, lower, or stabilise their prices. For example, a horizontal agreement between two competing fast-food chains that sell hamburgers on the retail price of cheeseburgers is illegal under antitrust laws. Price fixing violates the basic laws of demand and competitors. It provides monopolies with an advantage over competitors. It is not in the best interests of the customers. They raise customer prices, reduce incentives to innovate, and raise entry barriers.
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