So long as the MRFTA stipulates “a considerably lower price than the cost of supply” in the
provisions regarding unreasonable predatory pricing, a ‘low price’ should be determined
prima facie based on the ‘cost of supply’. In the case of manufacturing, the ‘low price’
determination should be made on the total costs including variable and fixed costs. Since
HIT’s bid price failed to reflect the labor costs, as admitted by HIT itself, it constituted a ‘low
price’ per se.