Which of the Following Is False About Quantity Discounts

question 76

Multiple Choice

Which of the following is false about quantity discounts?

• A) Quantity discounts are a form of price discrimination which allow a seller to charge a higher price for the first unit than for later units.
• B) Quantity discounts allow price discriminating producers to extract additional consumer surplus from customers.
• C) Price discrimination, such as offering quantity discounts, can result in a greater output, and thus greater consumer surplus and producer surplus, by a monopolist than if price discrimination was not possible.
• D) Quantity discounts benefit those customers who would not buy any of a monopolist's product at the price that the monopolist would charge if it could not price discriminate.

---

Definitions:

Golden Triangle

A term for various globally recognized tripartite areas known for specific characteristics, such as being a hotspot for drug trafficking in Southeast Asia or a touristic route in India.

Sweet Spot

refers to an optimum point or combination of factors that produce the best results or effects.

Attention Zone

A state or period where an individual's focus is concentrated on specific stimuli, leading to better reception and processing of information.

Principle of Closure

A psychological tendency to perceive a complete image even when the sensory information is incomplete, based on our experience and expectations.