In the pricing schedule for marginal unit quantity discounts,
A)the average cost of a unit decreases at a breakpoint.
B)the average cost of a unit increases at a breakpoint.
C)the marginal cost of a unit decreases at a breakpoint.
D)the marginal cost of a unit increases at a breakpoint.

Question

Quizplus · Accepted Answer

In a marginal unit quantity discount schedule, the marginal cost of a unit decreases at a breakpoint because the discount applies to additional units beyond a certain quantity.

In the Pricing Schedule for Marginal Unit Quantity Discounts