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LilyGal LilyGal
wrote...
Posts: 350
A week ago

Question 1.

Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?



the Clayton Act



the Cellar-Kefauver Act



the Sherman Act



the Robinson-Patman Act



Question 2.

Clarissa Kessler operates a store that sells toys. Her business suffered tremendously when a giant discount store chain opened a store in the area and is able to sell its products for less than Clarissa's wholesale cost. Is this evidence of illegal price discrimination on the part of the discount store chain?



No, because it can be argued that the discount store chain is justified in charging lower prices because it is a large-volume buyer and is able to purchase toys at a lower wholesale price than Clarissa.



Yes, the discount store chain is engaging in predatory pricing.



Yes, it is clearly a violation of the Robinson-Patman Act.



No, even if the price discrimination is based on differences in cost, the law states that it is not illegal.

Textbook 

InMicro


Edition: 1st
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amw87470amw87470
wrote...
Posts: 318
Rep: 9 0
A week ago
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Answer 1

the Robinson-Patman Act



Answer 2

No, because it can be argued that the discount store chain is justified in charging lower prices because it is a large-volume buyer and is able to purchase toys at a lower wholesale price than Clarissa.

1

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wrote...
A week ago
Appreciate the effort, thank you!
wrote...
A week ago
You're very welcome ... please mark the topic solved when you get a chance
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