Precision Parts Corporation and Quality Gears,Inc.,are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market.This market includes the states of Minnesota,North Dakota,and South Dakota.Precision Parts and Quality Gears agree that Precision Parts will no longer sell in Minnesota and that Quality Gears will no longer sell in North and South Dakota.Have Precision Parts and Quality Gears violated any antitrust law? If so,which one? Explain.If they had divided their market by type of customer rather than geographic are,would the result be the same? Why or why not?

Question

Precision Parts Corporation and Quality Gears,Inc.,are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market.This market includes the states of Minnesota,North Dakota,and South Dakota.Precision Parts and Quality Gears agree that Precision Parts will no longer sell in Minnesota and that Quality Gears will no longer sell in North and South Dakota.Have Precision Parts and Quality Gears violated any antitrust law? If so,which one? Explain.If they had divided their market by type of customer rather than geographic are,would the result be the same? Why or why not?​

Quizplus · Accepted Answer

The Answer of Precision Parts Corporation and Quality Gears,Inc.,are competitors selling certain machine parts that are otherwise generally unattainable in their geographic market.This market includes the states of Minnesota,North Dakota,and South Dakota.Precision Parts and Quality Gears agree that Precision Parts will no longer sell in Minnesota and that Quality Gears will no longer sell in North and South Dakota.Have Precision Parts and Quality Gears violated any antitrust law? If so,which one? Explain.If they had divided their market by type of customer rather than geographic are,would the result be the same? Why or why not?​