If a student club orders five shirts, each shirt costs $22. If it orders twenty shirts, each shirt costs $20 each. If it orders thirty shirts, each shirt costs $18. This is an example of

Question

Quizplus · Accepted Answer

This is an example of second-degree price discrimination, where prices vary according to the quantity consumed or purchased. The more shirts the club orders, the lower the price per shirt, which is a common practice in bulk purchasing.

If a Student Club Orders Five Shirts, Each Shirt Costs