If Best Dogs only sells their hot dogs in packages of eight, all of the following are true except which one?

Question

Quizplus · Accepted Answer

Best Dogs is not practicing commodity bundling, as the product being sold (hot dogs) cannot be unbundled into smaller components. The company is simply selling a specific quantity of hot dogs in each package, which is known as a quantity bundling strategy. However, the other three statements are true: Best Dogs likely has market power if it can sell hot dogs in packages of eight with no close substitutes; by limiting the quantity options for consumers, Best Dogs is effectively changing consumer surplus into profit; and by only offering one package size, Best Dogs is using an all-or-nothing pricing scheme.

If Best Dogs Only Sells Their Hot Dogs in Packages