A camera manufacturer sells its cameras only to retailers who agree to buy the brand of film it sells.This is an example of _____

Question

Quizplus · Accepted Answer

This scenario represents a tying contract, as the camera manufacturer is tying the purchase of its cameras to the purchase of its brand of film by the retailers. This type of contract can be used to exploit market power by leveraging it in one product to gain an advantage in another.

A Camera Manufacturer Sells Its Cameras Only to Retailers Who