Tying agreements
A) establish common boards of directors for previously competing firms.
B) obligate a purchaser of product X to also buy product Y from the same seller.
C) allow manufacturers to specify the retail prices of their products.
D) prohibit firms from selling their products outside of specified geographic areas.

Question

Quizplus · Accepted Answer

Tying agreements obligate a purchaser of one product to also buy another product from the same seller. This can be used as a strategy to eliminate competition for the second product and maintain market power.

Tying Agreements