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Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Tying Resale Price Maintenance Predatory Pricing Cubit is the only firm producing office cubicles. It costs $1,550 to produce a office cubicle, and Cubit sells each office cubicle for $2,150. After In Square, a new firm with the same costs as Cubit, enters the market for office cubicles, Cubit starts selling its office cubicles for a price of $800. Snackyville sells a wide variety of snacks to retail grocery stores. Snackyville recently released two new snacks: a popular trail mix and a much less popular granola bar. Snackyville requires grocery stores to buy 10 cases of the granola bar for every 100 cases of the trail mix ordered. Rhythm is a firm that produces mp3 players. Suppose Rhythm sells its mp3 players to retail stores for $162 each and requires those retailers to charge customers at least $172 for each mp3 player.

Business Economics, Economics

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