If you purchase one pound of apples the price is $1.50 per pound.If you buy a five pound bag of apples,the cost is $5.00.This is most likely an example of
A) quantity discounts.
B) lower marginal cost.
C) lower marginal benefit.
D) price gouging.

Question

Quizplus · Accepted Answer

This is an example of quantity discounts as the price per pound decreases when purchasing a larger quantity (i.e. a five pound bag versus one pound).

If You Purchase One Pound of Apples the Price Is