Why are quantity discounts most often used?
A)to reward the buyer who pays in cash
B)to encourage large orders
C)to increase supply for a specific raw material
D)to shift the storage function backward to the supplier

Question

Quizplus · Accepted Answer

Quantity discounts are most often used to encourage large orders. This allows the seller to benefit from economies of scale in production, storage, and distribution. As the order size increases, the cost per unit decreases, allowing the seller to offer a lower price per unit to incentivize larger orders.

Why Are Quantity Discounts Most Often Used