Question

) going to the wholesale club, one can buy toothpaste at a lower cost per unit as long as one buys 6 tubes at once. this is an example of _____ and this _____ total producer surplus.

Answer 1

The answer is imperfect price discrimination and this increase total producer surplus.

Imperfect price discrimination it is about the monopoly of pricing to get the customers. The seller applies a strategy to get the market from buying the products. Then set customers by the group, those who buy for wholesale gets a lower price than in retail.