In the Early 1980s, Typical Round Trip Coach Fares from the East

Multiple Choice

In the early 1980s, typical round trip coach fares from the East Coast to London were over $500. Then Freddie Laker introduced a competing service into Newark at $350. Major airlines matched his price-and continued to do so until they drove Laker out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. Laker's experience is an example of:

A) deceptive pricing.
B) price fixing.
C) predatory pricing.
D) price discrimination.