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Soda Companies Pay Universities for the Exclusive Right to Sell

Question 81

Multiple Choice

Soda companies pay universities for the exclusive right to sell their products on campus. For example, the University of Buffalo agreed to sell only Pepsi on campus in exchange for $220,000 per year. This agreement:


A) is beneficial for students because they no longer have to make a choice about which soda to purchase.
B) is beneficial for students if Pepsi charges a monopoly price on campus.
C) may be beneficial for students, depending on how the university uses the $220,000.
D) is harmful to students because the extra money gained by the university cannot be used for their benefit.

Correct Answer:

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