To Develop a Network of Dealers, Hummer Vehicles Are Sold

To develop a network of dealers, Hummer vehicles are sold only at one dealership per city. Other dealers want the vehicles to sell, but are refused. The local dealers earn high profit margins due to the lack of local competition. Under antitrust law, this arrangement is likely to be found:

A) legal because producers are free to sell their products any way they wish
B) illegal as a boycott of willing dealers
C) illegal because producers must make their products available at the same price to whoever wants to buy
D) illegal because producers may not exploit profit margins
E) none of the other choices