The three largest cola manufacturers in a country agree among themselves that each one will sell the products only in certain predetermined geographical "territories." This is an example of ________.
A) accommodation
B) price fixing
C) market sharing
D) group boycott

Question

Quizplus · Accepted Answer

This situation describes market sharing, where the three cola manufacturers divide the market among themselves by agreeing to sell their products only in specific territories. This reduces competition and allows each company to maintain a certain level of market share. Price fixing involves collusion to set prices at a certain level, accommodation involves an agreement to compromise or find a middle ground, and group boycott involves a group of firms refusing to do business with a particular company or supplier. None of these fully capture the situation described in the question.

The Three Largest Cola Manufacturers in a Country Agree Among