Luanicorp wants to increase its profitability. It agrees with another company, Wescorp, to divide the market so that all customers north of a state line must come to one company for services, and all customers south of the state line must go to the other. The companies will then be free the deal with their customers as they wish. Which of the following is true of this situation?

• This is legal as long as no agreements are made with a competitor.
• This may be illegal under the rule of reason.
• This is legal.
• This is illegal per se.