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Charging a Higher Price on the Tied Good and a Lower

Question 47

Multiple Choice

Charging a higher price on the tied good and a lower price on the monopoly good renders the tie- in strategy:


A) always a better choice than price discrimination.
B) efficient because it does not create deadweight loss.
C) fair because the consumer gets a good deal on the average.
D) an available alternative strategy to extract surplus from the customer.

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