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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

2 Answers

5 votes

a. constitute predatory pricing and are a violation of the Robinson-Patman Act.

User Enforge
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2 votes

a. constitute predatory pricing and are a violation of the Robinson-Patman Act.

good luck

User Chris Heald
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