The Robinson-Patman Act does permit some price differences-but they must be based on
A) cost differences.
B) the need to make profits.
C) accounting practices.
D) cartel requirements.
E) conscious parallel action.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act permits price differences as long as they are based on cost differences. This means that if a company can demonstrate that it costs more to produce and distribute a product in a certain geographic area or to a certain customer group, they may charge higher prices to cover those additional costs. However, price differences based on factors such as the need to make profits or conscious parallel action are not allowed under the act.

The Robinson-Patman Act Does Permit Some Price Differences-But They Must