Your firm produces electric blenders. A certain popular model has a suggested retail price of $30. Your firm sells it wholesale for $18. Smaller stores tend to sell the blender at the suggested retail price. One large discount chain begins to sell the blender for $26 and asks you to cut the price to them to $17.50. Because of that chain’s large sales, your production and profits are up. You will earn even higher profits if you cut the price to them to $17.50—a possible violation of the Robinson- Patman Act. Should you cut the price for the chain? What if the chain says that it will cut its retail price to $25.50 if you cut the price to $17.50?