A small town has only two professional photographers. One of them recently purchased some expensive new equipment and thus raised his rates. After his competitor’s rate hike, the other lost business because customers thought it necessary to pay a higher price for quality services. Thus the second photographer also raised his rates, although he never got new equipment. Have these two engaged in antitrust violations?
Yes, they unnecessarily raised their rates.
Yes, it is reasonable to assume they agreed to the rate hikes.
No, there is no proof of any agreement to raise prices.
No, nothing prevented new photographers from opening business in the town.
