Texbeer Company Manufactures and Distributes Beer Only in Texas

question 69

Multiple Choice

Texbeer Company manufactures and distributes beer only in Texas.National Breweries manufactures and distributes beer nationally,including in Texas.National lowers its prices in Texas,but nowhere else,selling its beer at below costs,to drive Texbeer out of business.Texbeer sues for price discrimination.In this situation,which of the following is true?

• A) This is illegal primary line price discrimination.
• B) This is illegal secondary line price discrimination.
• C) This is illegal tertiary line price discrimination.
• D) This is legal because of the changing conditions.
• E) This is legal because of meeting the competition.

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Definitions:

Blisspoint

The optimal level of satisfaction or pleasure for a consumer, often used in food industry to describe the perfect balance of saltiness, sweetness, and fattiness.

Contingent Responses

Behaviors or actions that are performed in response to specific conditions or stimuli, often depending on the presence or absence of certain factors.

Reinforcing Activities

Activities or actions that increase the likelihood of a behavior being repeated by providing a positive outcome or reward.

Premack's Probability-Differential Theory

A theory that suggests more probable behaviors will reinforce less probable behaviors.