Selling a product at below cost in an effort to get a larger market share may violate the Robinson-Patman Act.

Question

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The Robinson-Patman Act prohibits price discrimination, which includes selling a product at a lower price than cost in order to gain a competitive advantage and larger market share. This is considered an unfair trade practice that can harm smaller competitors who cannot afford to sell products at a loss.

Selling a Product at Below Cost in an Effort to Get