Mel owns Melco,Inc. ,which manufactures toys.She provides a functional discount to Carol,a wholesaler of toys.Carol then passes on her discount to Nina,who owns Funland,a toy store.Nina is then able to offer lower prices to toy purchasers.Under the Robinson-Patman Act,this is:

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Nina (a customer of toy manufacturer Mel's favored customer Carol)may gain a competitive advantage over her competitors by receiving a functional discount from Carol if Carol passes on all or a portion of her discount to Nina.This form of price discrimination is known as tertiary level (or third line)price discrimination.

Mel Owns Melco,Inc