Suppose That You Own a Toy Store and Want to Buy

question 30

Multiple Choice

Suppose that you own a toy store and want to buy 100 talking robots. Your supplier will sell you the robots only if you also agree to buy 200 dolls. This is an illegal practice called

• A) monopolistic.
• B) a tying contract.
• C) a cartel.
• D) discriminatory.

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Definitions:

Cash Flow Estimate

An assessment of the amount of money expected to flow in and out of a business over a specific period.

Marginally Profitable

Describes a business or investment that generates a slight profit above its break-even point.

Capital Gain

The profit earned from the sale of an asset when the selling price exceeds its purchase price.

Book Value

The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.