Phillip Esten Operates a Mail Store in Which He Offers

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