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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

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