Phillip Esten Operates a Mail Store in Which He Offers

question 74

Multiple Choice

Phillip Esten operates a mail store in which he offers various services such as packaging items for shipment,delivering items to overnight services,and a fax machine.Esten has been charging $2.00 per page for the fax service,but a new store has opened in a nearby shopping center that is charging $1.00 per page.Esten lowers his price to $.50 per page,knowing this charge will not always cover his cost.Esten's actions:

• A)constitute predatory pricing and are a violation of the Robinson-Patman Act.
• B)constitute meeting the competition.
• C)constitute resale price maintenance violations.
• D)none of the above

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Definitions:

Monozygotic Twins

Twins that originate from a single zygote splitting and developing into two individuals with nearly identical genetic makeup.

Fertilized

The state of an egg cell after it has been penetrated and combined with a sperm cell, initiating the development of a new organism.

Splits

In psychoanalysis, a defense mechanism where conflicting internal attitudes or perspectives are separated from each other and not integrated.

Zygotes

are the initial cell formed when a new organism is produced by sexual reproduction, resulting from the fusion of male and female gametes.