Complete the foilowing table by Indicating whether each of the scenarios describ

Question

Complete the foilowing table by Indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatony Resale Price Predatory Scenario Tying Maintenance Pricing Snackyvillie sells a wide variety of snacks to retail grocery stores.Snackyville recently released two new nacks: a popular tra mix and much less p pdar granola bar. Snackyvile requires gocery stores to buy 15 cases of the grenola bar for every 120 cases of the trail mix ordered Heat-Em-Up is the only firm producing grlls. It costs $410 to produce a grill, and Heat-Em-Up sells each girill 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. True or False: By bundling the two snacks together, Snackyville can force grocery stores to pay more than they would be willing to pay when purchasing the snacks separabely O True B. option commond

Explanation / Answer

Ans:

1)

Tying is a pricing practice in which a seller will sell a product to a buyer only on the condition that he purchases another product

Under predatory pricing goods are priced at such a low level that other firms cannot compete at such price and are forced to leave the market.

Resale price maintenance is an agreement between a manufacturer and a retailer that products should not be sold below a specified price.

2)

False

when two snacks are bundled together grocery stores will pay less than they are willing to pay when purhasing the snacks saperately.

Scenario Pricing Snackyville Tying Heat-Em-Up Predatory pricing Televix Resale price maintenance

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