General Mills offers three sizes of its popular cereal Cheerios: 10-,14-,and 18-ounce boxes,and they are priced at approximately .99,
)99,and
)49,respectively.The company employs this tactic to

Question

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General Mills is using a pricing strategy called "price discrimination" where they charge different prices for the same product based on the quantity purchased. By offering larger boxes at a lower price per ounce, they encourage customers to buy more and increase their revenue. This also makes it more difficult for competitors to match their prices, as their production costs may be higher for smaller quantities.

General Mills Offers Three Sizes of Its Popular Cereal Cheerios