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QUESTION

Hendry Products charges Montgomery Meats a lower price for goods because the owners of both companies are on the same soccer team.

Hendry Products charges Montgomery Meats a lower price for goods because the owners of both companies are on the same soccer team. Hendry charges other firms similar to Montgomery Meats more for the same products and this is beginning to hurt the business of the other firms. In fact, Montgomery 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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