Why are bigger versions of items often more economical?

Question

So for example I might I have 500g bottle of iced tea that’s $2.80 but then there’s a 1L version that’s $3.00

Why is that?

In: 1

Answer 1

It’s like buying in bulk. The more you buy, the cheaper it is per unit. But you’re still spending more money, aren’t you? That iced tea probably cost 10 cents (maybe) to produce. At the end of the day, it’s an incentive to buy more.