Figure 11.5.1
-The pricing technique known as tying:
A) permits a firm to meter demand.
B) permits a firm to practice price discrimination.
C) enables a firm to extend its monopoly power to new markets.
D) all of the above

Question

Figure 11.5.1
-The pricing technique known as tying:
A) permits a firm to meter demand. 
B) permits a firm to practice price discrimination. 
C) enables a firm to extend its monopoly power to new markets. 
D) all of the above

Quizplus · Accepted Answer

Tying allows a firm to bundle products together and charge a premium, which can help the firm meter demand and practice price discrimination. It can also extend a firm's monopoly power to new markets, as customers who want the desired product will have to purchase the tied product as well. Therefore, all of the above options are correct.

Figure 11.5.1 -The Pricing Technique Known as Tying