1) If your company wants to maintain its image as a high-end product provider, is it legal to create a floor for your product's prices? If so, under what circumstances?

2."It's a free country." Why are agreements by competitors to boycott (to refuse to deal with) certain others considered a problem that needs to be dealt with by law?

 

1. No, according to Sherman Act Antitrust law of 1980 which is still effective until this day.

2. Refusal to deal business with other firms considered as a problem that needs to be dealt by the law since there should be a limit for a firm with market power or the monopolist even if it is a free country. The means of refusal should be checked if the monopolist maintains its monopoly by using its power or by monopolizing other market.

Step-by-step explanation

1. This restraints ensure to keep the consumer welfare and the economy effective and efficient. There are rules in the market that should be abide in keeping the prices down. To keep the competition protected and also other firms in this economy, these acts should be prevented. Rig bids, divide markets, business to fix prices and etc. are harmful acts. In Sherman Acts the per se violation means there is no justification.

2. It is also a violation of antitrust flow even it it is a free country. There's a limitation in using the market power. If the monopolist refuses to deal by selling products or services to competitors that makes it available to others. It depends by what means the act of monopolist directed to if it is because by maintaining monopoly or by monopolizing other markets.

For example: If you refuse to deal or cancel the contract with other business if they have any connection to your competitors.