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
Suppose you want to buy 4 donuts. The donut place sells them for $1 each. So that’s $4 you’ll have to pay for 4 donuts.
But when you walk into the store, you see that they have a special. You can get 6 donuts for $5. That’s cheaper! Now you have a choice to make. Do you buy the 4 you initially wanted, or get two extras for only a dollar more?
As long as the donut shop can make donuts for less than 50 cents a piece, this is a good deal for them. Yeah, they occasionally lose a dollar on people who were going to buy 6 donuts anyway. But maybe a lot more people go in there planning to buy 2, 3, or 4 donuts, and are persuaded to upgrade because they’re getting a good deal.
Latest Answers