Dell Computers Is a Nationally Recognized Manufacturer of Computers for the Small

question 176

Multiple Choice

Dell Computers is a nationally recognized manufacturer of computers for the small business and home markets. If Dell were to order one of its wholesalers not to carry any computer products other than those made by Dell, this arrangement would be called

• A) a tying contract.
• B) refusal to deal.
• C) a restricted sales territory.
• D) a restricted channel.
• E) exclusive dealing.

---

Definitions:

Zero Profit

A situation where a firm's total revenues are exactly equal to its total costs, leading to no net gain or loss.

Breaking Even

The situation in which a firm is earning exactly a normal rate of return.

Economic Profit

This refers to the surplus remaining after subtracting both visible and hidden costs from total revenues, highlighting a firm's genuine financial gain.

Annual Profit

Annual profit refers to the total profit a business earns over the course of a fiscal year, accounting for all revenues minus expenses during that period.