An example of a tying arrangement is______ a. a restaurant offering both Pepsi and Coca-Cola products. b. a car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells. c. a landlord offering free rent for the first month when a tenant signs a one-year lease. d. two companies competing on price. e. a coffee shop offering

Question

18-12-2019
Business

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An example of a tying arrangement is______ a. a restaurant offering both Pepsi and Coca-Cola products. b. a car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells. c. a landlord offering free rent for the first month when a tenant signs a one-year lease. d. two companies competing on price. e. a coffee shop offering

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BenitoMarin BenitoMarin · Answer 1 · 2019-12-20T16:17:49+01:00

Answer:

The correct answer is letter "B": A car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells.

Explanation:

A tying agreement is the type of contractual arrangement where a seller offers other(s) product for the purchase of one good as a part of only one bundle. The secondary product might not be necessary but the seller offers it mainly to generate more profit. Tying arrangements are considered anti-competitive practices.