A Manufacturer Might Try to Defend Itself Against Charges of Illegal

question 55

Multiple Choice

A manufacturer might try to defend itself against charges of illegal price discrimination by claiming that:

• A) the price discrimination occurred as a defensive measure to "meet competition in good faith."
• B) the price differentials did not actually injure competition.
• C) the price differentials were justified on the basis of cost differences in production and/or distribution.
• D) its products were not of "like grade and quality."
• E) Any of these could make price discrimination legal.

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Definitions:

Competitive Advantage

A distinctive feature or standpoint enabling a company to surpass its rivals in performance.

Market Environmental Forces

The external factors, such as economic, social, technological, legal, and competitive forces, that affect a company's ability to operate successfully in a particular market.

Ecological Management

The practice of managing and conserving the natural environment and resources to sustain ecological balance and health.