RC Willey, a multi-store furniture retailer, allows its marketers to employ a low-price tactic because based on high-volume purchases, they pay $40 less per La-Z-Boy Rocker than does Robbie's Rockers, small, independent specialty furniture and RC Willey's primary competitor for the same product. This is a case of ____________ and it is____________.
1. horizontal price discrimination; legal
2. vertical price discrimination; illegal
3. vertical price discrimination; legal
4. horizontal price discrimination; illegal
5. predatory pricing; illegal