unit cost is cost of 1 unit of a product, here its cost of 1 pound of sugar. In first case unit cost is $1.10. In second case cost of 2 pound = $1.98, or cost of 1 pound = [1.98/2] = $0.99. In third case cost 3 pound = $2.85, or cost of 1 pound = [2.85/3] = $0.95. We can see that as the quantity is increasing unit cost is decreasing.
unit cost is cost of 1 unit of a product, here its cost of 1 pound of sugar.
In first case unit cost is $1.10.
In second case cost of 2 pound = $1.98, or cost of 1 pound = [1.98/2] = $0.99.
In third case cost 3 pound = $2.85, or cost of 1 pound = [2.85/3] = $0.95.
We can see that as the quantity is increasing unit cost is decreasing ;
The unit cost of sugar decreases as the quantity increases. Specifically, it costs $1.10 per pound for a 1-pound bag, $0.99 per pound for a 2-pound bag, and $0.95 per pound for a 3-pound bag. Therefore, larger quantities provide a better value per pound.
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