Midwest Agri-Products Corporation offers to sell its sugar substitute to Nice Candies,Inc.,only if Nice Candies agrees to buy all the corn it needs from Midwest Agri-Products,even though there are other corn sellers from whom Nice Candies could buy.This is

Question

Quizplus · Accepted Answer

This is a tying arrangement where the sale of one product (sugar substitute) is made conditional on the purchase of another product (corn) from the same seller. Therefore, Midwest Agri-Products is forcing Nice Candies to buy its corn by leveraging its monopoly power in the sugar substitute market.

Midwest Agri-Products Corporation Offers to Sell Its Sugar Substitute to Nice