Jay Corporation, the largest manufacturer of bicycles in the United States, with 40 percent of the market, has recently entered into an agreement with Retail Bike, the largest retailer of bicycles in the United States, with 37 percent of the market, under which Jay will furnish its bicycles only to Retail and Retail will sell only Jay’s bicycles. The government is now questioning this agreement. Discuss.

Jay Corporation, the largest manufacturer of bicycles in the United States, with 40 percent of the market, has recently entered into an agreement with Retail Bike, the largest retailer of bicycles in the United States, with 37 percent of the market, under which Jay will furnish its bicycles only to Retail and Retail will sell only Jay’s bicycles. The government is now questioning this agreement. Discuss.