If two quick oil change companies agree that one company will purchase locations in rural and suburban areas and the other company will purchase locations in the urban areas, this is an example of_______ .

Question

Quizplus · Accepted Answer

This is an example of market division, where two companies agree to divide the market among themselves based on geographic areas. This is an illegal practice as it restricts competition and can lead to higher prices for consumers. Bid rigging involves conspiring to manipulate the bidding process, price fixing involves setting prices at an agreed upon level, and output restrictions involve agreeing to limit the amount of products or services offered. None of these practices are present in the scenario described.

If Two Quick Oil Change Companies Agree That One Company