The Difference Between Tying and Bundling in Pricing Strategies Is

question 68

Multiple Choice

The difference between tying and bundling in pricing strategies is that:

• A) they both are strategies that firms use to maximize profit.
• B) tying does not require the purchase of both goods, but bundling does.
• C) tying involves the combination of goods that are complements, whereas bundling involves the combination of substitutes.
• D) tying does not lead to as much profit as bundling does.

---

Definitions:

First-Name Basis

A relationship or interaction style where individuals address each other by their first names, indicating a level of familiarity.

Diagnostic Examination

Tests and procedures performed to identify the cause of an illness or disorder in a patient.

Pap Test

A screening procedure for cervical cancer involving the collection of cells from the cervix.

Sigmoidoscopy

A medical examination of the sigmoid colon and rectum using a flexible tube with a light and camera to detect any abnormalities or diseases.