In class, we heard that we might adjust prices by offering quantity discounts. What is the key assumption of this pricing tactic?
a.
Everyone loves a deal.
b.
Customers who are further away will buy more.
c.
We get "economies of scale" with larger orders.
d.
We will get consumers' attention drawn to more profitable products.
e.
We will have a short Product Life Cycle.
Answer: We get "economies of scale" with larger orders.