A small chain of bagel shops currently prices its bagels at $0.99 apiece. The manager of the chain recognizes the value of price segmentation and is considering how he might charge lower prices to his high-volume customers.
(a) Design an order-size discount pricing structure that could accomplish this price segmentation.
(b) Design a cumulative-purchase discount structure to accomplish this price segmentation.
(c) Design a two-part pricing structure to accomplish this price segmentation.
(d) Would the manager have to choose among the three discount structures described in Parts (a) through (c), or would he be able to do all three? Justify your view on this.