Under the Robinson-Patman Act, a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise. Volume discounts can be a violation of the Robinson-Patman because, according to the law:

Question

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The Robinson-Patman Act prohibits price discrimination where it injures competition or gives an unfair advantage to certain buyers. Volume discounts may be considered price discrimination if they give large volume retailers an advantage over small volume retailers, and this can harm competition. Therefore, both options E) price discounts injure competition and price discounts give large volume retailers an advantage over small volume retailers are correct. Option B) is not relevant to the Robinson-Patman Act, and option C) is essentially the same as option E).

Under the Robinson-Patman Act, a Producer May Not Be Able