Why Do Companies Charge More for Small Quantities?

Imagine you're at a store and want to buy just one candy bar. The shopkeeper charges more for that single candy than if you bought ten. This is price discrimination, when companies charge different prices based on how much you’re buying, so they can make more money from people who don’t buy in bulk.

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Examples

  1. A candy store charges $1 for one chocolate bar but only $0.75 each if you buy ten.
  2. You can get a single coffee at $3 from a café, but a bag of ten costs just $20 total.
  3. A printer shop offers $2 per page printed, but if you print 50 pages, it's only $1 per page.

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