5. Questionable business practices according to antitrust agencies Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or tying. Resale Price Maintenance Predatory Pricing Scenario Breezy Hut is the only firm producing air conditioners. It costs $1,000 to produce one air conditioner, and Breezy Hut sells each air conditioner for $1,200. After Gregale, a new firm with the same costs as Breezy Hut, enters the market for air conditioners, Breezy Hut starts selling its air conditioners for a price of $550. Wally's sells a wide variety of skateboards to retail sporting good outlets. Wally's recently rolled out two new skateboards: a popular Dallas II and a much less popular Drydeck 3. Wally's requires sporting good outlets to order 15 boards of the Drydeck 3 for every 140 boards of the Dallas II bought. SnapFace is a firm that manufactures polaroid cameras. Suppose SnapFace sells its polaroid cameras to online retailers for $159 each and requires those online retailers to charge at least $179 to shoppers for each polaroid camera. O O True Tying O True or False: By bundling the two skateboards together, Wally's can force sporting good outlets to pay more than they would be willing to pay when purchasing the skateboards separately.
5. Questionable business practices according to antitrust agencies Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or tying. Resale Price Maintenance Predatory Pricing Scenario Breezy Hut is the only firm producing air conditioners. It costs $1,000 to produce one air conditioner, and Breezy Hut sells each air conditioner for $1,200. After Gregale, a new firm with the same costs as Breezy Hut, enters the market for air conditioners, Breezy Hut starts selling its air conditioners for a price of $550. Wally's sells a wide variety of skateboards to retail sporting good outlets. Wally's recently rolled out two new skateboards: a popular Dallas II and a much less popular Drydeck 3. Wally's requires sporting good outlets to order 15 boards of the Drydeck 3 for every 140 boards of the Dallas II bought. SnapFace is a firm that manufactures polaroid cameras. Suppose SnapFace sells its polaroid cameras to online retailers for $159 each and requires those online retailers to charge at least $179 to shoppers for each polaroid camera. O O True Tying O True or False: By bundling the two skateboards together, Wally's can force sporting good outlets to pay more than they would be willing to pay when purchasing the skateboards separately.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 9PA
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Transcribed Image Text:5. Questionable business practices according to antitrust agencies
Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or tying.
Resale Price
Maintenance
Predatory
Pricing
Scenario
Breezy Hut is the only firm producing air conditioners. It costs $1,000 to produce one air
conditioner, and Breezy Hut sells each air conditioner for $1,200. After Gregale, a new firm with
the same costs as Breezy Hut, enters the market for air conditioners, Breezy Hut starts selling its
air conditioners for a price of $550.
Wally's sells a wide variety of skateboards to retail sporting good outlets. Wally's recently rolled out
two new skateboards: a popular Dallas II and a much less popular Drydeck 3. Wally's requires
sporting good outlets to order 15 boards of the Drydeck 3 for every 140 boards of the Dallas II
bought.
SnapFace is a firm that manufactures polaroid cameras. Suppose SnapFace sells its polaroid
cameras to online retailers for $159 each and requires those online retailers to charge at least
$179 to shoppers for each polaroid camera.
True
O
O False
Tying
O
True or False: By bundling the two skateboards together, Wally's can force sporting good outlets to pay more than they would be willing to pay when
purchasing the skateboards separately.
O
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