Defense based on cost differentials against charges of price discrimination under the Robinson-Patman Act works only if the price differences exceed the cost differences resulting from selling to various classes of buyers.

Question

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The defense based on cost differentials under the Robinson-Patman Act works if the seller can prove that the price differences are justified by cost savings in serving different buyers, not only when price differences exceed cost differences.

Defense Based on Cost Differentials Against Charges of Price Discrimination