Big Corp.(BC)operated in all 50 states.In all the states except Oregon,BC was the dominant firm in its industry.Small Corp.(SC)operated only in Oregon,but was the dominant firm in that state.BC decided it wanted to destroy SC so that it would become dominant in Oregon.BC cut its prices and sold below cost in Oregon,while maintaining regular prices everywhere else.This is an example of:

Question

Quizplus · Accepted Answer

Big Corp.is engaging in local and territorial price discrimination (lower prices only in Oregon)with the aim of driving Small Corp.(the dominant player in Oregon)out of business.This type of price discrimination is classified as primary level or first-line price discrimination.

Big Corp(BC)operated in All 50 States