The ________ is a defense in a Section 2(a)action which provides that a seller's price discrimination is not unlawful if the price differential is due to "differences in the cost of manufacture,sale,or delivery" of the product.
A)natural monopoly defense
B)meeting the competition defense
C)changing conditions defense
D)cost justification defense

Question

Quizplus · Accepted Answer

The cost justification defense provides that a seller's price discrimination is not illegal if the price difference is due to differences in the cost of manufacture, sale, or delivery of the product. The natural monopoly defense applies when the seller has a monopoly due to natural circumstances like owning a scarce resource. The meeting the competition defense applies when a seller lowers their prices to meet their competitors. The changing conditions defense applies when the seller changes their prices due to changes in market conditions.

The ________ Is a Defense in a Section 2(a)action Which