The Robinson-Patman Act:
A) States that selling the same product to different consumers at different prices is always illegal.
B) Makes it illegal for a firm to offer quantity discounts.
C) Requires that promotional allowances be made available to all of a firm's customers on "proportionately equal" terms.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act requires that promotional allowances be made available to all of a firm's customers on "proportionately equal" terms. However, it does not make it illegal for a firm to offer quantity discounts, as long as they are offered on proportionately equal terms. The Act also does not state that selling the same product to different consumers at different prices is always illegal, but it does prohibit price discrimination that lessens competition or tends to create a monopoly.