Universal Video sells 40 percent of the video recording equipment in the United States. One-half of Universals

Question:

Universal Video sells 40 percent of the video recording equipment in the United States. One-half of Universal’s sales is to Giant Retailer, a company that possesses 50 percent of the retail market. Giant seeks either

(a) to obtain an exclusive dealing arrangement with Universal or

(b) to acquire Universal.

Advise Giant as to the validity of its alternatives.

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