As a Procter & Gamble sales representative, you sell Pampers diapers, among many other brands, to grocery store chains of all sizes. One of the smaller chains located in three states, which earns close to $200 million annually, would like a discount. Under the Robinson-Patman Act, what kind of discount could you offer this customer?
A) No discount; the price of Pampers must remain exactly the same for all customers.
B) You can offer up to a 10% discount to smaller retailers, but not larger retailers.
C) You can offer up to a 10% discount to larger retailers, but not smaller retailers.
D) You can offer a discount to this and any other retailer based strictly on the volume of their orders.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act allows for price discrimination based on the volume of products purchased, meaning discounts can be offered to retailers based on the quantity of their orders, not their size or earnings.

As a Procter & Gamble Sales Representative, You Sell Pampers