A Vendor Offers 5 Different Prices Per Unit Depending on the Quantity

question 23

Multiple Choice

A vendor offers 5 different prices per unit depending on the quantity purchased. How many binary variables are needed to model this discounting scheme?

• A) 4
• B) 2
• C) 3
• D) 5

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Definitions:

Product Advantage

Product advantage refers to the unique benefits or value that a product offers over its competitors, making it more appealing to customers.

Segmentation Variable

Criteria or characteristics used to divide a market into distinct subsets, which can then be targeted by marketing strategies.

Instant Rice

Precooked rice that has been dehydrated so that it cooks more rapidly than regular rice.

Product Feature

An attribute or functionality of a product that contributes to its desirability or usability.