A photograph processing machine company requiring customers who buy a processing machine to purchase chemicals and photographic paper from it is an example of
A)bundling.
B)a requirement tie-in sale.
C)quantity discrimination.
D)a two-part tariff.

Question

Quizplus · Accepted Answer

A requirement tie-in sale is when a company requires customers to purchase additional products or services in order to purchase the primary product. In this case, the photograph processing machine company is requiring customers to purchase chemicals and photographic paper in addition to the processing machine. This is a requirement tie-in sale, which is different from bundling (where the company offers the additional products as a package deal) and quantity discrimination (where different prices are offered based on the quantity purchased) and a two-part tariff (where customers pay a fixed fee plus a variable fee based on usage).

A Photograph Processing Machine Company Requiring Customers Who Buy a Processing