Which Act Prohibits Price Discrimination Unless It Is Based on Cost

question 29

Multiple Choice

Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?

• A) Sherman Act
• B) Federal Trade Commission Act
• C) Robinson-Patman Act
• D) Magnuson-Moss Act
• E) Wheeler-Lea Act

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from undertaking a project or making a decision.

Pro Forma

A method of calculating financial results to emphasize either current or projected figures.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Statement of Financial Position

Another term for a balance sheet, it provides a snapshot of a company's assets, liabilities, and shareholder equity at a specific point in time.