Acme Computer Co

question 395

Multiple Choice

Acme Computer Co. sells computers to retail stores for $400. If Acme requires the retailers to charge customers $500 for the computers, then it is engaging in

• A)resale price maintenance.
• B)predatory pricing.
• C)tying.
• D)monopolistic competition.

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Definitions:

Utility Functions

Representations that quantify the satisfaction or happiness consumers gain from consuming various bundles of goods and services.

Fair Allocations

In economics and game theory, it refers to the distribution of resources or goods among participants in such a way that the allocation is considered equitable according to certain criteria.

Apples

A type of fruit that is grown on apple trees and comes in several varieties differing in sweetness, color, and size.

Oranges

A citrus fruit rich in vitamin C, cultivated and consumed worldwide, both fresh and as juice.