Author Question: What is tying or bundling of goods?[br][br][b][color=#FBB117]Question 2[/color][/b][br][br]Which of ... (Read 13 times)

nenivikky · **on:** Jun 30, 2018

What is tying or bundling of goods?

Question 2

Which of the following is not a necessary condition for price discrimination?
a. The firm must be a price maker.
b. The firm must be able to distinguish between customers.
c. The firm must be able to prevent resale of a product between customers.
d. The firm must be able to produce homogeneous products.
e. The firm must have a downward-sloping demand curve.

jgranad15 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Goods or services are often sold as packages of potentially separable components. For example, customers of General Motors have to buy cars with preinstalled engines built by the company.

Answer to Question 2

d