Would each of the following business practices be legal under antitrust law? Explain.
You have a patent for a superior fax machine and therefore are the only person able to sell that type of fax machine. In order to buy your fax machine, you require the purchaser to buy a service contract from you (even though other firms provide excellent service for your machine).
You have invented a new type of correction fluid that does an amazing job covering up mistakes made on paper forms. In order to buy your correction fluid, you require purchasers to buy all of their office supplies from you.
You own a car dealership and plan to buy the dealership across the street and merge the two companies. There are several other car dealerships in town.
The FYI in this module discusses the possibility that regulators set prices for wind energy on the basis of average total cost. Explain why policymakers who don’t want to pay subsidies would choose average cost pricing over marginal cost pricing in the market for wind energy.