Agri-Tech Supplies a Patented Sweetener to Various Food Processors

question 35

Multiple Choice

Agri-Tech supplies a patented sweetener to various food processors. It has noticed that the value of the sweetener varies dramatically from one buyer to another, depending on the end-use demand. But its experiments with charging higher prices to some buyers have failed because:

• A) price discrimination is always illegal.
• B) of market arbitrage.
• C) the cost of production is always the same.
• D) outsourcing is compromised by contracting costs.

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