Question

Alpha, Inc., Beta Corporation, and Omega Company compete against each other in Illinois, Indiana, and Ohio. To reduce marketing costs, they agree that Alpha will sell products only in Illinois, Beta only in Indiana, and Omega only in Ohio. This allows each firm to raise the price of the goods in its state and increase profits. Is this a violation of antitrust law? If so, is it a per se violation or is it subject to evaluation under the rule of reason?

Answer

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