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Big Johnson Products Charges Moe's Meats a Lower Price for Goods

Question 20

Multiple Choice

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly. Big Johnson charges other firms similar to Moe's Meats more for the same products and this is beginning to hurt the business of the other firms. In fact, Moe's Meats is taking so much business away from the others due to its lower prices that the other firms are in danger of going out of business. This is an example of


A) price discrimination.
B) price reversal.
C) price-cutting.
D) price maintenance.

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