What unethical activity are companies engaging in when they set similar prices for their products?

When companies set similar prices for their products, they may engage in price fixing, which is an unethical practice where competing businesses collude to set prices at a certain level rather than allowing them to be determined by the free market. This type of activity undermines competition, leading to higher prices for consumers and limiting choices in the marketplace. Price fixing can result in legal ramifications and is viewed as detrimental to fair market practices because it artificially inflates prices and erodes consumer trust. In essence, it disrupts the natural dynamics of supply and demand by restricting competition, which is vital for a healthy economy.