Buyers who buy in bulk are often offered discounts.This is an example of ________.

Question

Quizplus · Accepted Answer

Second-degree price discrimination involves offering discounts for bulk purchases, which is exactly what is described in the scenario. Marginal pricing involves setting prices based on the incremental cost of producing each unit, first-degree price discrimination involves charging each customer the maximum price they are willing to pay, and third-degree price discrimination involves offering different prices to different groups of customers based on their willingness to pay. None of these strategies are specifically mentioned in the scenario.

Buyers Who Buy in Bulk Are Often Offered Discounts