Price discrimination is illegal in the United States.
Answer the following statement true (T) or false (F)
False
Price discrimination as discussed in the textbook is not illegal. Predatory pricing, in which a seller lowers a price below unit cost with the intention of establishing a monopoly, is illegal under the Sherman Antitrust Act.
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The "tragedy of the commons" refers to a phenomenon where
A) people do not internalize an externality. B) people have distinct property rights to a resource. C) people overuse a common resource. D) individuals are not allowed to use a common resource.
A market is initially in a long-run equilibrium and there is a permanent increase in demand. After the new long-run equilibrium is reached, there
A) are more firms in the market. B) are fewer firms in the market. C) are the same number of firms in the market. D) probably is a different number of firms in the market, but more information is needed to determine if the number of firms rises, falls, or perhaps does not change. E) is no change in the market.