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Homer,IncIs the Western Regional Distributor for Plato Ice Cream

Question 108

Multiple Choice
Homer,Inc.is the western regional distributor for Plato Ice Cream.Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon.Homer says the Utah ice cream market is much more competitive and he has to meet the market.Utah competitors charge between $2.50 and $2.75 per half gallon.Homer:

Homer,Inc.is the western regional distributor for Plato Ice Cream.Homer charges grocers in California $3.00 per half gallon but charges Utah grocers only $2.00 per half gallon.Homer says the Utah ice cream market is much more competitive and he has to meet the market.Utah competitors charge between $2.50 and $2.75 per half gallon.Homer:


A) has engaged in price discrimination.
B) is simply meeting the competition.
C) is exempt from Robinson-Patman because of interstate sales.
D) none of the above

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