What does price discrimination hinder according to the Robinson-Patman Act?

The Robinson-Patman Act primarily addresses the issue of price discrimination, which occurs when a seller charges different prices to different buyers for the same product without justification based on cost differences. This act was designed to protect businesses from unfair pricing practices that could undermine competition.

When price discrimination is practiced, it can create an uneven playing field among producers. For example, large companies might receive lower prices than smaller competitors, allowing them to strengthen their market position unfairly. This can hinder competition because it allows dominant players to exploit their size and resources to maintain or extend their market share, often at the expense of smaller competitors. By addressing price discrimination, the Robinson-Patman Act aims to promote fair competition, ensuring that market dynamics allow equal opportunities for all producers.

The other options, while relevant in different contexts, do not directly relate to the core purpose of the Robinson-Patman Act in terms of hindering competition among producers.