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
on the demand side
customer who’s thirsty will be more willing to pay for higher price at the chilled vending machine/quick checkout from convenience store
vs pack of water sitting shelves at room temperature in supermarket
also the utility of each bottle of water aren’t the same for 1st 2nd 3rd …
it diminishes as 1 bottle is best suited for drinking for the day and carrying around and stuff
on the supply side
manufacturers can save cost per bottle of water
by being able to produce at a more efficient rate
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