Question

Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices.A) price skimming.

B) market penetration.
C) price bundling.
D) price fixing.
E) transfer pricing.

Answer 1

The video game company Nintendo colluded with European distributors in a case of price fixing, leading to higher retail prices in certain countries.

Step-by-step explanation:

The subject of this question is Business. In this case, the video game company Nintendo colluded with European distributors to engage in restrictive practices that reduced competition. Specifically, they agreed not to sell to retailers in countries with high prices, which resulted in higher prices for consumers in those countries. This behavior is known as price fixing.