Consumers often seek bargains by purchasing goods in large quantities; for example, buying in bulk at Costco or buying larger boxes of cereal so the price per ounce is lower. These purchasing strategies result in which form of price discrimination?

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves pricing based on quantity sold or consumed. Buying in bulk for a lower per-unit price is a classic example of this, as consumers are effectively given a discount for purchasing larger quantities.

Consumers Often Seek Bargains by Purchasing Goods in Large Quantities;