A large multinational organization discontinues its clothing manufacturing business and subsequently lowers the prices of all clothing goods manufactured by it.In this instance,the organization can claim the ________ defense to price discrimination.

Question

Quizplus · Accepted Answer

The changing conditions defense applies when the organization changes its operations or discontinues a product line, which can justify a change in pricing. In this case, the organization discontinues its clothing manufacturing business, which is a changing condition that justifies the lower prices for all clothing goods. The cost justification defense applies when the lower prices are justified by lower production or marketing costs. Meeting the competition defense applies when the lower prices are necessary to compete with rivals, and implied exemptions defense applies when the pricing is exempted from the antitrust laws.

A Large Multinational Organization Discontinues Its Clothing Manufacturing Business and Subsequently