Shaun, a loyal MR reader, asks:
I have something that is
bugging me: I have noticed that the small tuna fish cans are cheaper,
by the ounce, than the larger ones. This holds true with every brand
and supermarket. This seems very counterintuitive to me; nearly every
other food product gets cheaper as the quantity increases. I wondered
if you could tell me what’s going on here.
Could it be storage and spoilage costs, thereby making this the corollary of the vending machine question? Or is it price discrimination against families and in favor of single people? Or do single people never finish the can and thus they need a lower price as compensation, noting that you still have to cite storage costs to prevent arbitrage? Those are my quick reactions, can you do better?