Josh Owns a Company That Makes Televisions

question 37

Essay

Josh owns a company that makes televisions.The company makes high-quality TVs and has a large share of the market.Recently Josh's company decided to expand its business into
surround-sound systems.If the company requires its distributors to buy the surround-sound system as a condition of sale for the TVs,would there be an illegal restraint? Why or why not?

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Definitions:

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods or services, used in economics to model decision making under uncertainty.

Min

Often short for "minimum," it represents the smallest or least possible amount or degree of a certain quantity or measure.

Numeraire Good

A benchmark or standard commodity against which the relative price of all other goods and services is measured in an economy.

Initial Endowment

The initial set of assets, goods, or resources that individuals or entities possess before entering into any economic transactions or exchanges.