Question: A customer was very upset because one restuarant located in a nice tourist area wanted to charge them $100 for a simple 2-egg breakfast and

A customer was very upset because one restuarant located in a nice tourist area wanted to charge them $100 for a simple 2-egg breakfast and they had no customers. Then as they walked down the street, theynoticed that there were 12 other restuarants thatwere charging between $2.99 to $4.99 for a 2-egg breakfast and they all had plenty of customers. Obviously there was lots of competition between almost all the restaurants. But this customer was still upset at the first restaurant and wanted to go to court and sue them for"Price Discrimination."

Conclusion: This will be an easy legal case to win. Any court judge will agree with the angry customer that the pricing strategy of the first restaurant was both"illegal"and qualifies as"Price Discrimination."Is thisconclusion statement True or False?

Tip #1: This is a very competitive market.Tip

#2: The first restaurant's high-price price strategy is not attracting any customers.

Tip #3: Did you read Chapter 12 carefully on the issue of Price Discrimination?

true

false

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