Which of These Statements Regarding Quantity Discounts Is Most Accurate

question 212

Multiple Choice

Which of these statements regarding quantity discounts is most accurate?

• A) Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do noncumulative quantity discounts.
• B) Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
• C) Quantity discounts are primarily used to undercut competitors' prices.
• D) Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent large quantity purchases.
• E) Quantity discounts are designed to reward wholesalers and retailers for marketing functions they will perform in the future.

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Definitions:

Tax Revenues

The income that is gained by governments through taxation, used to fund public services, infrastructure, and government obligations.

Government Expenditures

The total amount of money spent by the government in a certain period, including spending on public services, social security benefits, and infrastructure projects.

Monetary Policy

The actions of a central bank or other regulatory authority that determine the size and growth rate of the money supply, which in turn affects interest rates.

Fiscal Policy

Government use of taxation and spending policies to influence economic conditions, including aggregate demand, employment, and inflation.