Question

Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing.
scenario tying resale price maintenance predatory pricing

heat-em-up is the only firm producing grills. it costs $430 to produce a grill, and heat-em-up sells each grill for $950. after well done, a new firm with the same costs as heat-em-up, enters the market for grills, heat-em-up starts selling its grills for a price of $330.

televix is a firm that produces televisions. suppose televix sells its televisions to retail stores for $810 each and requires those retailers to charge customers at least $840 for each television.

book bound sells a wide variety of books to retail bookstores. book bound recently published two new books: a popular mystery novel and a much less popular history book. book bound requires bookstores to buy 15 copies of the history book for every 120 copies of the mystery novel ordered.

true or false?:

by bundling the two books together, book bound can force bookstores to pay more than they would be

Answer 1

Completing the table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing is as follows:

What is predatory pricing?

When prices are set very low to eliminate the competition, it is described as predatory pricing.

For example, in scenario 1, Heat-em-up engages in predatory pricing when it lowers its price for a grill to $330 from $950.

What is resale price maintenance?

Resale price maintenance involves an agreement between the producer and the retailer that retail prices should not be set below a set amount.

For example, in scenario 2, Televix engages in resale price maintenance when it requires its retailers to charge customers at least $840.

What is tying?

Tying is an arrangement that ensures a retailer purchases two or more products from a manufacturer when they want to purchase some other goods.

For instance, in scenario 3, Book Bound engages retail bookstores in tying or bundling as it requires them to buy 15 copies of the history book for every 120 copies of the mystery novel ordered.

Thus, it is true that by product bundling the two books together, Book Bound can force bookstores to pay more than they would have paid had they purchased only the history books.

Learn more about tying, resale price maintenance, or predatory pricing at brainly.com/question/13057117 and brainly.com/question/15004897

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