WAEC Commerce 2025 Theory — Question 14

Question 14 of 24 from the West African Examinations Council (WAEC) Commerce 2025 Theory paper, with the correct answer and a full explanation.

5(b) State four reasons the company would offer such a discount.

Model answer

i. A quantity discount encourages people to buy more. ii. It indirectly increases demand for the company's product. iii. The cost of production may reduce due to economies of scale. iv. It increases the revenue and total profits of the company.

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