Bundling is a form of price discrimination that may increase economic efficiency, specifically in cases where fixed costs are high and marginal costs are low.

Question

Quizplus · Accepted Answer

Bundling allows businesses to offer a discounted package deal for multiple products, which may incentivize customers to purchase more items than they would if they were purchasing each item individually. This can increase overall revenue for the business and allow them to spread out their fixed costs over a larger number of units sold. This can result in lower prices for consumers and increased economic efficiency for the business.

Bundling Is a Form of Price Discrimination That May Increase