Excavators & Haulers,Inc.,is the major wholesale distributor of heavy equipment in the state of Georgia.Its closest competitor is Forklifts & Tractors Company,an-other Georgia firm.The two firms agree that Excavators will operate in southern Georgia and Forklifts will operate in northern Georgia.This is

Question

Excavators & Haulers,Inc.,is the major wholesale distributor of heavy equipment in the state of Georgia.Its closest competitor is Forklifts & Tractors Company,an-other Georgia firm.The two firms agree that Excavators will operate in southern Georgia and Forklifts will operate in northern Georgia.This is​

Quizplus · Accepted Answer

The agreement between the two firms to operate in different regions of Georgia is a market division arrangement. This is an anti-competitive practice that divides the market among participants and limits competition, which could result in higher prices for consumers. It is illegal under antitrust laws.