A photograph processing machine company requiring customers who ...

[Arii_bell]

A photograph processing machine company requiring customers who buy a processing machine to purchase chemicals and photographic paper from it is an example of
 
  A) bundling.
  B) a requirement tie-in sale.
  C) nonlinear pricing.
  D) two-part pricing.

Question 2

In a simultaneous game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist.
 
  Indicate whether the statement is true or false

[Bsand8]

Answer to Question 1

B

Answer to Question 2

False. There are two Nash equilibria. In each, the two players are doing the opposite of one another. The problem is, it is difficult to know which equilibrium is achieved without some form of collusion.