Big Corp(BC)is in the Business of Making and Selling Plastic Products

question 74

Multiple Choice

Big Corp.(BC) is in the business of making and selling plastic products.Dominant and Micro both buy plastic products of similar grade and quality regularly from BC.Dominant is the biggest customer of BC while Micro usually buys very small quantities.Due to an unexpected shortfall of raw materials,BC anticipates significant reduction in plastic production at its plants.To maintain supply of plastic products to Dominant,BC quotes a 40 percent higher price for its products to Micro.Will this amount to a violation of Section 2(a) of the Robinson-Patman Act?

• A)Yes,because BC is committing primary level price discrimination.
• B)No,because Dominant deserves the preferential treatment.
• C)Yes,because BC is adversely affecting competition at its customer's level.
• D)No,because BC has not made any sales at higher prices to Micro.

---

Definitions:

Pulmonary Edema

A condition characterized by excess fluid in the lungs, making breathing difficult and reducing the oxygen levels in the bloodstream.

DE-style Equations

Differential equations that are characterized by particular methods or styles of solution, often associated with specific applications.

Flow Rate

The volume of fluid passing through a point or surface per unit time, often used in various scientific and engineering contexts.