The Robinson-Patman Act, administered by the U.S. Federal Trade Commission, addresses pricing that could substantially damage the level of competition in an industry. This type of pricing is called:
A) Competitive pricing.
B) Predatory pricing.
C) Cost-benefit pricing.
D) Peak-load pricing.
E) Threshold pricing.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act deals with predatory pricing, which is the act of setting prices below cost in order to drive competitors out of the market. This can harm competition and is therefore regulated by the government. Options A, C, D, and E are pricing strategies that do not necessarily harm competition and are not addressed specifically by the Robinson-Patman Act.

The Robinson-Patman Act, Administered by the U