How do firms that use captive-product pricing make up for the low prices of their main products?
A) They increase the price of the main products.
B) They provide the captive products as freebies.
C) They reduce the cost of the captive products.
D) They offer the captive products and main products together at a reasonable price.
E) They set high markups on the captive products.

Question

Quizplus · Accepted Answer

Firms using captive-product pricing often set low prices for the main product and then charge higher prices for the necessary captive products, which are required to use the main product, to make up for the initial low pricing.

How Do Firms That Use Captive-Product Pricing Make Up for the Low