Pricing schedules with all unit quantity discounts encourage retailers to
A)decrease the size of their lots.
B)increase the size of their lots.
C)decrease the size of their inventory.
D)increase the price of their products.

Question

Quizplus · Accepted Answer

All unit quantity discounts mean that the more a retailer purchases, the lower the cost per unit. This encourages retailers to buy in larger quantities to take advantage of the discounts and increase profit margins. Therefore, retailers are more likely to increase the size of their lots.

Pricing Schedules with All Unit Quantity Discounts Encourage Retailers to