There are several practices that firms can use to use to restrict competition. M
ID: 1099308 • Letter: T
Question
There are several practices that firms can use to use to restrict competition. Match the restrictive behavior with its correct description.
BUNDLING:
PREDATORY PRICING:
EXCLUSING DEALING:
MINIMUM RESALE PRICING ARRANGEMENTS:
A.) The iPad being priced at an artificially low price to drive competing products out of business
B.) An NFL team requiring that fans who purchase tickets to a desirable game must also buy tickets to a less desirable game
C.) Volkswagen requiring that dealers do not sell cars at a price below a certain threshold
D.) A theme park agreeing to sell only Pepsi products
Explanation / Answer
A. PREDATORY PRICING:
B. BUNDLING
C. MINIMUM RESALE PRICING ARRANGEMENTS
D. EXCLUSING DEALING