Criticisms of the Robinson-Patman act
A)It can reduces consumer surplus
B)It can reduces producer surplus
C)It can creates inefficiency through unconsummated transactions
D)All of the above

Question

Criticisms of the Robinson-Patman act ​
A)​It can reduces consumer surplus
B)It can reduces producer surplus
C)It can creates inefficiency through unconsummated transactions
D)​All of the above

Quizplus · Accepted Answer

The Robinson-Patman act can create inefficiency through unconsummated transactions as it often leads to a situation where producers are unable to sell their goods at lower prices to certain retailers, thus leading to a reduction in overall efficiency. Additionally, the act can reduce both consumer and producer surplus since it restricts sellers from offering discounts to buyers, which can lower prices for consumers and reduce costs for producers, respectively.

Criticisms of the Robinson-Patman Act ​

Criticisms of the Robinson-Patman Act