1. Section 2(b) of the Robinson-Patman Act allows a seller to price discriminate in certain geographic areas if the competition has a lower price. What can the seller lower the price to according to section 2(b)?
A. To the same price as the competitor
B. 10% discount off the list price of the seller
C. To intentionally create a price that beats the competitor
D. 50% discount off the list price of the seller
2. Humongous Corp., a conglomerate with interests in various industries, recently acquired Perfect Petrochemicals Co., a prominent producer of petroleum products that are used in manufacturing plastic. This acquisition was a complete surprise to Perfect's competitors, who never thought that Humongous had any desire to become involved in the petrochemical production business. Companies A and B owned by Humongous used plastic as a raw material. None of the companies under the Humongous umbrella made plastic, therefore A and B bought plastic from outside suppliers who used petrochemical products as raw material to make plastic. Which of the following theories is the most appropriate one for challenging the acquisition of Perfect by Humongous under Section 7 of the Clayton Act?
A.Elimination of actual potential competition
B.Unfair advantage
C.Potential reciprocity
D.Elimination of perceived potential competition