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Homework answers / question archive / The main reason suppliers can offer quantity discounts is that
The main reason suppliers can offer quantity discounts is that
The main reason suppliers can offer quantity discounts is that it incentivizes purchases to buy more of a product which more than makes up for the decreased profit-per-unit sold. This means that retailers also have incentives to offer quantity discounts as well to customers with promotions like "buy one get one half off". The quantity discount may also reflect that some variable costs in supply may fall if the company can reach a certain quota and thereby also increase profits.