Grain Train Inc. sells wheat to both Whack Inc. and Snack Inc., both manufacturers of wheat breads in New York. However, Grain Train Inc. helps Pack Inc. cut its costs by supplying wheat at low prices which in turn distorts the competition between Pack Inc. and Snack Inc. This is an example of a(n) _____ at the buyer's level.

Question

Quizplus · Accepted Answer

This situation describes a secondary-line injury, which occurs when a supplier gives preferential treatment to a buyer, potentially harming the competition between the buyer and other companies in the same market. In this case, Grain Train Inc. is helping Pack Inc. cut its costs, which could give Pack Inc. an unfair advantage over Snack Inc., which is also a buyer of Grain Train Inc.'s wheat.