Which of the following is true about the Robinson-Patman Act?
A)It made engaging in predatory activities illegal.
B)It forbade mergers if they led to weakened competition.
C)It toughened restrictions on mergers that reduced competition.
D)It forbade most forms of price discrimination.
E)It prohibited price fixing and collusion.

Question

Which of the following is true about the Robinson-Patman Act?​
A)It made engaging in predatory activities illegal.
B)It forbade mergers if they led to weakened competition.
C)It toughened restrictions on mergers that reduced competition.
D)It forbade most forms of price discrimination.
E)It prohibited price fixing and collusion.

Quizplus · Accepted Answer

The Robinson-Patman Act forbade most forms of price discrimination, which is the practice of charging different prices to different customers for the same product. This was intended to protect smaller businesses from larger competitors who could afford to offer products at lower prices due to their economies of scale. The act did not directly address predatory activities or mergers, though it did impose some restrictions on pricing practices in the context of mergers or acquisitions. The act also did not explicitly prohibit price fixing or collusion, though these practices would likely violate antitrust laws more broadly.

Which of the Following Is True About the Robinson-Patman Act?​

Which of the Following Is True About the Robinson-Patman Act?