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The collaborative of one or more persons setting a fixed price for goods or services to remove the free markets ability to influence prices is known as:

A. Monopoly
B. Price fixing
C. Supply and demand
D. Competitive bidding

User EBlake
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Final answer:

Price fixing is the act of setting fixed prices for goods or services by a group of entities, often forming a cartel, to control the market and replicate monopoly conditions, impeding the natural influence of supply and demand.

Step-by-step explanation:

The collaborative action by one or more persons or entities to set a fixed price for goods or services in order to remove the influence of the free market on price determination is known as price fixing. This is a form of collusion which occurs when oligopoly firms in a given market decide together on the quantity to produce and the price to charge. This collaboration can lead to restricted output and high prices, somewhat imitating a monopoly situation. When these firms formalize their agreement to collude and control the market, it's referred to as a cartel. By doing so, they undermine the competition which is a fundamental principle of a free market or perfect competition where prices are determined by the forces of supply and demand.

User Ladmerc
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