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Price Discrimination - Quantity Discounts

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I can't find anywhere in my textbook a "direct" answer to this question. I tend to think that it's neither true nor false, because quantity discounts can be a form of price discrimination under certain circumstances. I guess I just need confirmation. Can someone please give me guidance on this question?

"Quantity discounts are not a form of price discrimination because the firm saves on handling large orders. True or false? Explain."

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"Quantity discounts are not a form of price discrimination because the firm saves on handling large orders. True or false?

The statement is true. Whenever a firm ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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