If a large hardware chain offers a ten percent discount to those currently serving in the military and veterans, this is an example of ________ and is_______ .
A)price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly
B)price discrimination; always illegal per se
C)conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly
D)conditional sales; always illegal per se

Question

Quizplus · Accepted Answer

This is an example of price discrimination, which is not always illegal. In this case, it is only illegal if it substantially lessens competition or tends to create a monopoly. However, offering a discount to a specific group based on their status is still considered price discrimination. Conditional sales are not relevant in this scenario.

If a Large Hardware Chain Offers a Ten Percent Discount