The Quantity Discount Model Evaluates Whether Using an Order Size

question 52

True/False

The quantity discount model evaluates whether using an order size which qualifies for a price discount is always less cost effective than using the economic order quantity.

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Definitions:

Marginal Benefit

Marginal benefit is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Sushi Bar

A restaurant specializing in sushi, offering a variety of raw fish and seafood dishes, often served on a conveyer belt or prepared to order.

Additional Piece

A supplementary item or unit added to those already present or available.

Marginal Benefit Curve

A Marginal Benefit Curve represents the additional benefit that a consumer derives from consuming one more unit of a good or service, often decreasing as consumption increases.