A "buy one,get one for half price" promotion is an example of
A) price discriminating among units of a good.
B) price discriminating among groups of buyers.
C) a legal monopoly.
D) a natural monopoly.
E) marketing by a perfectly competitive firm designed to increase the firm's sales.

Question

Quizplus · Accepted Answer

A "buy one, get one for half price" promotion is an example of price discrimination among units of a good because the unit price for the buyer changes based on the quantity purchased. The first unit is sold at the regular price, and the second unit is sold at a discounted price. This practice is common in retail and allows sellers to appeal to price-sensitive buyers while still generating revenue from those willing to pay full price.

A "Buy One,get One for Half Price" Promotion Is an Example