Use the following to answer question:
Figure 10.5
-(Figure 10.5) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more units. Consumer surplus under the quantity discount is _____ than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of $24 per unit is _____ compatible.
A) $64 more; incentive
B) $32 less; not incentive
C) $53 less; incentive
D) $41 more; not incentive

Question

Use the following to answer question:
Figure 10.5 
-(Figure 10.5) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more units. Consumer surplus under the quantity discount is _____ than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of $24 per unit is _____ compatible.
A) $64 more; incentive 
B) $32 less; not incentive 
C) $53 less; incentive 
D) $41 more; not incentive

Quizplus · Accepted Answer

The Answer of Use the following to answer question:
Figure 10.5 
-(Figure 10.5) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more units. Consumer surplus under the quantity discount is _____ than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of $24 per unit is _____ compatible.
A) $64 more; incentive 
B) $32 less; not incentive 
C) $53 less; incentive 
D) $41 more; not incentive

Use the Following to Answer Question