Question

Mel owns Melco, Inc., which manufactures toys. She provides a functional discount to Carol, a wholesaler of toys. Carol then passes on her discount to Nina, who owns Funland, a toy store. Nina is then able to offer lower prices to toy purchasers. Under the Robinson-Patman Act, this is:

A. tertiary level price discrimination.

B. secondary level price discrimination.

C. valid, if Nina is not in the same territory as Mel.

D. valid, as Nina and Carol are not competitors.

Answer

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