A Unique Feature of the Robinson-Patman Act Is That It

question 319

Multiple Choice

A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

• A)Using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture,sale,or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers.
• B)Using price differentials when price differences are given on the basis of other family businesses.
• C)Using price differentials when charging different prices to different buyers for goods of like grade or quality.
• D)Using price differentials when charging different prices on the basis of religious affiliation.
• E)Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.

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Definitions:

Marginal Analysis

The examination of the costs and benefits of a small (marginal) change in the production of goods or services.

Wheat Farmer

An individual or entity engaged in the cultivation of wheat crops for consumption or sale.

Fertilizer

A chemical or natural substance added to soil to increase its fertility and enhance plant growth.

Marginal Cost

The price of generating an extra unit of a good or service.