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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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