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Sarreno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.70 per pound. In order to snare the business of one large pizza chain, Sarreno

Sarreno Cheese Co. supplies mozzarella cheese to pizza restaurants at $1.70 per pound. In order to snare the business of one large pizza chain, Sarreno offers to sell them cheese at $1.45 per pound. This will violate the Robinson-Patman Act unless:

a.

the pizza chain can already get the cheese for $1.45 elsewhere.

b.

Sarreno can show its price is justified because of a cost savings based on quantity.

c.

Sarreno lowers the price to all its customers.

d.

Any of these will allow Sarreno to avoid violating Robinson-Patman

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