ssm@cmu-ri-leg.ARPA (Sesh Murthy) (09/10/85)
There are several exceptions to the rule that larger is cheaper per unit volume. I read an article that explains this. There are two factors involved. 1) The larger item requires less packaging, handling etc. per unit weight. This decreases the price per unit. 2) Consumers do not like to buy very large sizes because they are not used at one time and may get spoiled. Therefore the size that sells the most moves faster and is bought in larger quantity. It therefore tends to be the cheapest. The price of what you buy depends on these two factors. e.g. few people buy the 20 oz packages of frozen vegetables. The 10 oz package is more popular and therefore as cheap or cheaper than the 20 oz package. I guess the same things happens with the colas though I am not sure.-- uucp: seismo!rochester!cmu-ri-leg!ssm arpa: ssm@cmu-ri-leg