Question

which law prohibits companies from charging extremely low prices to drive out competition?
select one:
a. alcoa
b. the robinson - patman act of 1936
c. clayton act
d. sherman antitrust act

two television station managers met over coffee. manager a encouraged manager b to agree to set more expensive (and the same) advertising rates for both stations to advertise a special event in their town. manager b listened to what manager a proposed and said he would think about it for his station. instead, manager b reported manager a to the fcc. did manager a do something wrong?

select one:
a. manager a was proposing price fixing
b. unfair trade practices act
c. there was nothing wrong with the proposal
d. price discrimination

Explanation:

For the first question: The Robinson-Patman Act of 1936 specifically addresses predatory pricing (charging extremely low prices to eliminate competition) as an unfair competitive practice.
For the second question: Manager A's proposal to set identical, higher advertising rates with a competitor is a classic example of price fixing, which violates antitrust laws.

Answer:

1. b. The Robinson-Patman Act of 1936
2. a. Manager A was proposing price fixing