Texbeer Company Manufactures and Distributes Beer Only in Texas

Texbeer Company manufactures and distributes beer only in Texas.National Breweries manufactures and distributes beer nationally,including in Texas.National lowers its prices in Texas,but nowhere else,selling its beer at below costs,to drive Texbeer out of business.Texbeer sues for price discrimination.In this situation,which of the following is true?

A) This is illegal primary line price discrimination.
B) This is illegal secondary line price discrimination.
C) This is illegal tertiary line price discrimination.
D) This is legal because of the changing conditions.
E) This is legal because of meeting the competition.

Correct Answer:

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