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This question was created from ETH 321T Week 5 Apply Assignment (2).docx


Blinkorp is selling toys to retailers across the nation. Depending on the season, the company
may make its toys with either higher-cost domestic plastics or lower-cost foreign plastics. The retailers
who purchase from Blinkorp complain about the different prices caused by the differently-priced
materials. Which of the following is true?
Blinkorp is justified in charging different prices because it needs to meet the price of
competition nationwide.
Blinkorp is justified in charging different prices because the toy industry is so flexible and
Blinkorp is engaging in price discrimination against the retailers and must equalize its prices.
Blinkorp is justified in charging different prices because of the differing production costs.

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