Two universities located within 30 miles of each other agree to allocate their customers so as to help them both.The two schools draw a line down a map,and each university agrees to accept students only on their side of the line.What type of horizontal cooperative strategy does this represent?
A)market division
B)refusal to deal
C)reciprocal dealing
D)joint venture

Question

Quizplus · Accepted Answer

Market division is a horizontal cooperative strategy where two or more firms agree to divide a market amongst themselves by allocating customers or territories. In this case, the two universities have agreed to divide the student market by drawing a line down the map and accepting students only on their respective sides. This ensures that they do not compete with each other for the same customers and helps them both to improve their market share.

Two Universities Located Within 30 Miles of Each Other Agree