answer these two questions and write a half page answer for each question

Answer the review questions, and write a half-page answer for each question.

Gary L. Roberts (2009). “The Use of Bundled Rebates by a Dominant Firm: LePage’s v. 3M (2003)”, in Kwoka, J. and L. White (eds.), Antitrust Revolution: Economics, Competition and Policy, 5th edition, Oxford University Press, Case 10, pp. 276-.

1. What did LePage do in private label market? Why did 3M has the motive to exclude it from the market?

2. A multi-product firm sells toothpaste at $5 with cost at $3, and sells detergent at $4 with cost at $2. If retailer order 1000 units for each of them, it will enjoy 30% off discount. Suggest how this bundle rebate program foreclose a firm selling toothpaste with cost at $3.

 

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