Question

Odyssey Corp., a wholesaler of children's toys, sells retailers across the country the exceedingly popular Trojan Horse toy at a price of $14 per item. Odyssey has learned that one of its competitors, Iliad Co., is selling the Trojan Horse toy at a price of $12 per item to all retailers in the state of Utah. Odyssey would like to respond appropriately to Iliad's actions. Which of the following statements accurately sets forth how Odyssey may respond without risking a violation of the Robinson-Patman Act?

A. Odyssey may begin selling the Trojan Horse toy at a price of $12 per item to Utah retailers, while keeping the price at $14 per item for retailers elsewhere in the country.

B. Odyssey may begin selling the Trojan Horse toy at a price of $11.75 per item to Utah retailers, while keeping the price at $14 per item for retailers elsewhere in the country.

C. Odyssey may begin selling the Trojan Horse toy at a price of $12 per item to Utah retailers, but only if it lowers the price to $12 per item for retailers elsewhere in the country.

D. Odyssey may begin selling the Trojan Horse at price of $11.75 per item all over the country.

Answer

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