In order for a firm to successfully use tying,:
A) the firm must sell the base good for 50% more than the second good.
B) the firm must sell the base good at a lower price than the second good.
C) the firm must charge the same price for the base good and the second good.
D) it must be difficult for other firms to sell the second good.

Question

Quizplus · Accepted Answer

Tying is most successful when it is difficult for other firms to sell the second good. If customers want the second good, they will have to buy it from the firm selling the base good, which gives the firm a competitive advantage. Tying is also typically used with a price advantage, but the specific pricing relationship between the base good and second good can vary.

In Order for a Firm to Successfully Use Tying