Chapter 17 - 10. Questionable business practices according to antitrust agencies

Complete the following table by matching each of the scenarios to the concept of resale price maintenance, predatory pricing, or tying. Resale Price Predatory Scenario Maintenance Pricing Tying Warm Winds is the only firm producing air fryers. It costs $420 to produce one air fryer, and Warm Winds sells each air fryer for $950. After Sirocco, a new firm with the same costs as Warm Winds, O O O enters the market for air fryers, Warm Winds starts selling its air fryers for a price of $330. Citron is a firm that manufactures electric scooters. Suppose Citron sells its electric scooters to online retailers for $930 each and requires those online retailers to charge at least $960 to O O O shoppers for each electric scooter. RightRound sells a wide variety of records to retail record stores. RightRound recently pressed two new records: a popular pop punk album and a much less popular smooth jazz album. RightRound O O O requires record stores to order 15 copies of the smooth jazz album for every 120 copies of the pop punk album bought. True or False: The only reason for Citron to require retailers to sell electric scooters at a certain price is to reduce competition and extend its market power to the retail market. Therefore, this practice is always economically inefficient. O True O False