TYING CONTRACT: A type of contract commonly used in the late 1800s and early 1900s in which the sale of one good by a producer was made conditional on the purchase of another good. This was commonly used by firms to extended the market control they had over a product in a monopolized market to another product in a more an otherwise competitive market. The use of tying contracts was specifically outlawed by the Clayton Act in 1914. However, modern firms continue to use tying contracts with varying degrees of success.

     See also | Clayton Act | monopoly | exclusive agreement | interlocking directorate | antitrust laws | Sherman Act | price discrimination |

TYING CONTRACT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: January 20, 2022].

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The change in total cost (or total variable cost) resulting from a change in the quantity of output produced by a firm in the short run. Marginal cost (MC) indicates how much total cost changes for a given change in the quantity of output. Because changes in total cost are matched by changes in total variable cost in the short run (total fixed cost is fixed), marginal cost is the change in either total cost or total variable cost. It is found by dividing the change in total cost (or total variable cost) by the change in output. Marginal cost is one of four cost concepts used in short-run production analysis. The other three are average total cost, average fixed cost, and average variable cost.

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