Asked by Keeva Szeto on May 20, 2024
Verified
Marginal unit quantity discounts have also been referred to as multi-block tariffs.
Quantity Discounts
Discounts offered to buyers for purchasing large quantities of goods, aimed at incentivizing bulk purchases and increasing sales volume.
Multi-Block Tariffs
A pricing structure used by utilities and service providers where the cost per unit of service varies with the amount of usage, often increasing in blocks or tiers as usage rises.
- Acquire insight into how volume discounts influence consumer ordering patterns.
- Familiarize yourself with the consequences of applying price discrimination and offering discounts on large orders for improving profit margins and streamlining supply chain operations.
Verified Answer
BE
Brett EpsteinMay 21, 2024
Final Answer :
True
Explanation :
Marginal unit quantity discounts are often called multi-block tariffs because the pricing structure involves dividing the quantity into blocks and charging differential rates for each block. As the customer purchases more units, the price per unit decreases, creating a stair-step pattern for the pricing structure.
Learning Objectives
- Acquire insight into how volume discounts influence consumer ordering patterns.
- Familiarize yourself with the consequences of applying price discrimination and offering discounts on large orders for improving profit margins and streamlining supply chain operations.
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