When a Firm Uses a Form of Quantity Discrimination That

question 32

True/False

When a firm uses a form of quantity discrimination that charges large purchasers less it is the high quantity purchasers that generate most profit.

---

Definitions:

Product Proliferation

The increase in the number and variety of products offered by a company or in a market, often leading to greater choice for consumers but also increased complexity and competition.

Fad Product

A product that becomes extremely popular in a short period of time and whose popularity fades just as quickly.

Life-Cycle Curve

A graphical representation showing the stages a product goes through from conception to withdrawal from the market, typically including introduction, growth, maturity, and decline.

Product Form

The specific physical composition, shape, or configuration in which a product is offered to consumers.