Dave Owns a Trash Removal and Recycling Company Named Dave's

question 10

Multiple Choice

Dave owns a trash removal and recycling company named Dave's Trash Heep. He only has one competitor in the trash removal market, Jim, of Jim's Junkyard Dogs, but he thinks that one competitor is one too many. Dave meets with Jim and they agree to divide the town into two separate districts. Each person agreed only to pick up trash in his own district. There was no procompetitive effect from allocating the town between them. What type of antitrust violation have Dave and Jim engaged in?

• A) A vertical restraint.
• B) A horizontal restraint.
• C) Price discrimination.
• D) All of the above.
• E) None of the above.

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Definitions:

Delegate Responsibility

The act of assigning duties or tasks to someone else, usually a subordinate, while maintaining accountability.

Optimize Efficiency

The process of making something as effective and productive as possible, often through the improvement of procedures, resources, or systems.

Proximity to Reward

The closeness or immediacy of a reward, influencing an individual's motivation and behavior toward achieving that reward.

Forgiving

The act of letting go of resentment or vengeance toward a person or group who has harmed you.