Final answer:
Price fixing is when a manufacturer conspires with retailers to maintain retail prices, often leading to reduced competition and is typically illegal.
Step-by-step explanation:
The practice of a manufacturer conspiring with retailers to ensure certain retail price levels are maintained is known as price fixing. This is a method of reducing competition and is often illegal. Antitrust authorities prevent companies from forming cartels to reduce output and increase prices. While a manufacturer cannot legally enforce a minimum resale price maintenance agreement, which would limit competition, they can suggest minimum prices and choose not to do business with dealers who sell below those suggested prices.