Question

NextGen Electronix Inc. is a wholesaler of electronic goods in the city of Erbia. The company sells goods manufactured by CellDer Inc. The wholesaler enjoys monopoly because it is the only intermediary selling those products in the city. This is an example of a(n) ________.

Select one:

a. exclusive dealing

b. materials requirement planning (MRP)

c. tying contract

d. exclusive territory

e. just-in-time (JIT) inventory control

Answer 1

An exclusive dealing agreement is an example of NextGen Electronix Inc.'s monopoly as the sole intermediary for CellDer Inc. products in the city of Erbia. The correct answer is option a.

Step-by-step explanation:

An example of a(n) exclusive dealing agreement is when a wholesaler, like NextGen Electronix Inc., has the exclusive rights to sell products manufactured by a specific company, such as CellDer Inc., in a particular city, like Erbia. This means that NextGen Electronix Inc. is the only intermediary selling CellDer Inc. products in Erbia, giving them a monopoly in that market. Exclusive dealing agreements can have both legal and anticompetitive effects, depending on their purpose and impact on competition.