Price-break models deal with the fact that the selling price of an item varies with the order size.

Name: Price-break models deal with the fact that the selling price of an item varies with the order size.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Price-break models, also known as quantity discount models, take into account the fact that as the order size increases, the unit cost of production decreases, allowing for a lower selling price per unit. Therefore, there is a price break or discount when larger quantities are ordered.

Price-Break Models Deal with the Fact That the Selling Price