The owner of BargainSmartphones.com is determined to drive competitors such as CheapPhones.com out of business. He has plenty of money to invest in building his business, so he has instructed his marketing manager to slash prices by 25% to 50% on nearly every product until there aren't any other online cell phone retailers left. Which of the following statements is true about this situation?
A) This business owner is probably guilty of tax evasion.
B) This business owner could be using illegal loss-leader pricing tactics.
C) This business owner is most likely guilty of price discrimination.
D) This business owner is probably violating the Robinson-Patman Act.

Question

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The Answer of The owner of BargainSmartphones.com is determined to drive competitors such as CheapPhones.com out of business. He has plenty of money to invest in building his business, so he has instructed his marketing manager to slash prices by 25% to 50% on nearly every product until there aren't any other online cell phone retailers left. Which of the following statements is true about this situation?
A) This business owner is probably guilty of tax evasion.
B) This business owner could be using illegal loss-leader pricing tactics.
C) This business owner is most likely guilty of price discrimination.
D) This business owner is probably violating the Robinson-Patman Act.

The Owner of BargainSmartphones