Under the Robinson-Patman Act, a Producer May Not Be Able

question 56

Multiple Choice

Under the Robinson-Patman Act, a producer may not be able to charge one retailer a lower price than it charges another retailer just because the first retailer buys more merchandise. Volume discounts can be a violation of the Robinson-Patman because, according to the law:

• A) price discounts injure competition
• B) price discounts unfairly target urban areas
• C) price discounts give large volume retailers an advantage over small volume retailers
• D) price discounts unfairly target urban areas and price discounts give large volume retailers an advantage over small volume retailers
• E) price discounts injure competition and price discounts give large volume retailers an advantage over small volume retailers

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Definitions:

Poisson Distributions

A distribution in statistics showing the chances of a specified number of occurrences within a set period of time or area.

Service Rate

The speed at which a service provider can deliver its service to customers, often measuring throughput in a system.

Distribution Of Service Times

The variation and pattern of times it takes for a service to be completed, often analyzed to improve process efficiency.