If United Widgets lowers its price to all buyers of 10 or more widgets because it costs United less to sell that quantity, it is not a violation of the Robinson-Patman Act.

Question

Quizplus · Accepted Answer

The Robinson-Patman Act prohibits price discrimination only if it causes harm to competition or if it gives a competitive advantage to one buyer over another. In this case, if United Widgets is lowering the price for all buyers of 10 or more widgets based on a legitimate cost difference, and not to give an unfair advantage to specific buyers, it is not a violation of the Act.

If United Widgets Lowers Its Price to All Buyers of 10