Bundling can increase efficiency when fixed costs are high because the fixed costs are:
A) offset by increasing marginal costs.
B) offset by increasing variable costs.
C) lower when goods are bought in a package.
D) spread across more consumers.

Question

Quizplus · Accepted Answer

When fixed costs are high, bundling allows for the fixed costs to be spread across more consumers. This can result in lower per-unit fixed costs and increased efficiency.

Bundling Can Increase Efficiency When Fixed Costs Are High Because