Which of These Is an Example of a Tying Agreement

question 65

Multiple Choice

Which of these is an example of a tying agreement?

• A) as part of purchasing a new computer, a buyer must also purchase a new monitor
• B) when purchasing a new digital music player, a buyer is given the option of buying songs
• C) when purchasing a used car, a buyer is offered a discount on new tires
• D) when purchasing a couch, the buyer is given free throw pillows

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Definitions:

Foreign Market

Markets outside of a company's home country where it conducts or seeks to conduct business.

Primary Value Chain

The sequence of activities an organization undertakes to develop, produce, and sell its products or services, generating value for customers.

Production Function

An economic model expressing the relationship between inputs (like labor, capital) used in production and the output of those production processes.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.