In order for a firm to successfully use tying:
A) the firm must sell the base good for 50 percent 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 a strategy where a firm requires customers to purchase a second good in addition to the base good. In order for this strategy to be successful, it must be difficult for other firms to sell the second good. This creates a captive market for the firm's base good and can lead to increased profits. The price relationship between the base good and the second good is not necessarily a factor in the success of tying.

In Order for a Firm to Successfully Use Tying