B2B quantity discounts:
A)are used to encourage consumers to purchase larger quantities each time they buy.
B)might be cumulative or noncumulative.
C)are considered illegal under the Robinson-Patman Act.
D)usually lead to price wars.
E)can only be offered to large purchasers.

Question

Quizplus · Accepted Answer

B2B quantity discounts can be cumulative or noncumulative, meaning that they can either apply to the purchase of a single large quantity or to the accumulation of purchases over time. This is a common practice in B2B pricing, and is typically used to incentivize larger purchases from customers. However, offering discriminatory quantity discounts based on a customer's size or bargaining power is illegal under the Robinson-Patman Act. While quantity discounts can potentially lead to price competition among suppliers, they are not inherently indicative of a price war.

B2B Quantity Discounts