Although a quantity discount has a positive effect on the purchase price, a buyer need not be cautious about the net impact on the total cost of an item.

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Although a quantity discount may lower the purchase price of an item, it can also lead to an increase in other costs such as transportation and storage costs. Therefore, a buyer should be cautious about the net impact on the total cost of an item.

Although a Quantity Discount Has a Positive Effect on the Purchase