All of the following might explain a firm offering quantity discounts except:
A)the lower costs of handling large orders.
B)an inelastic demand for the good.
C)a monopoly power in this market.
D)the adoption of a sales maximization strategy.

Question

Quizplus · Accepted Answer

Quantity discounts are typically offered to encourage larger purchases, take advantage of economies of scale, or to maximize sales. An inelastic demand means that consumers' purchase quantities do not significantly change with price changes, making it an unlikely reason for a firm to offer quantity discounts.

All of the Following Might Explain a Firm Offering Quantity