Example: one bottle of water is like $2 but a whole pack of 24 is like $8. Isn’t the company losing money by charging less for more resources/labor & packaging?
In: 8
Labor costs and manufacturing capabilities have certain efficiency thresholds. I work in manufacturing and it will cost us, in labor, the same to make 500 of something as it would to make 2500 of something. So, the 2500 about will come out cheaper because the cost to produce is spread across more units. This happens up and down the supply chain.
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