When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the following may result:

Question

Quizplus · Accepted Answer

When firms agree to allocate territories in a market and fix prices at the same time, it is called market allocation and price-fixing which may result in a reduction of competition within regions, exercise of monopoly power in their assigned region, violation of the Sherman Act, and their actions may be found per se illegal. Therefore, all of the choices are correct.

When Firms Competing at the Same Level of Business Agree