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 are when a seller requires a buyer to purchase a second product (Product Y) as a condition of purchasing the first product (Product X). This practice can raise antitrust concerns if it reduces competition.

Tying Agreements