10. Questionable business practices according to antitrust agencies Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or bundling. Resale Price Maintenance Predatory Pricing Scenario RightRound sells a wide variety of records to retail record stores. RightRound recently pressed two new records: a popular pop punk album and a much less popular smooth jazz album. RightRound requires record stores to order 15 copies of the smooth jazz album for every 140 copies of the pop punk album bought. Warm Winds is the only firm producing air fryers. It costs $460 to produce one air fryer, and Warm Winds sells each air fryer for $900. After Sirocco, a new firm with the same costs as Warm Winds, enters the market for air fryers, Warm Winds starts selling its air dryers for a price of $330. RightRound is a firm that manufactures record players. Suppose RightRound sells its record players to online retailers for $342 each and requires those online retailers to charge at least $362 to shoppers for each record player. O O O O Bundling O

10. Questionable business practices according to antitrust agencies Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or bundling. Resale Price Maintenance Predatory Pricing Scenario RightRound sells a wide variety of records to retail record stores. RightRound recently pressed two new records: a popular pop punk album and a much less popular smooth jazz album. RightRound requires record stores to order 15 copies of the smooth jazz album for every 140 copies of the pop punk album bought. Warm Winds is the only firm producing air fryers. It costs $460 to produce one air fryer, and Warm Winds sells each air fryer for $900. After Sirocco, a new firm with the same costs as Warm Winds, enters the market for air fryers, Warm Winds starts selling its air dryers for a price of $330. RightRound is a firm that manufactures record players. Suppose RightRound sells its record players to online retailers for $342 each and requires those online retailers to charge at least $362 to shoppers for each record player. O O O O Bundling O

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Economic Regulation And Antitrust Policy

Section: Chapter Questions

Problem 3.5P

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