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Title: From an economic perspective, price discrimination is desirable because Post by: tlc_71111 on Feb 27, 2019 From an economic perspective, price discrimination is desirable because
• the increase in profits is more than offset by the loss in consumer surplus, resulting in a net increase in economic surplus. • it enables firms to increase profits with no loss in economic surplus, and in turn, this could provide firms with incentives to engage in beneficial product innovation. • the increase in profits results in higher corporate tax revenues received by the government which could be used to subsidize consumption for low-income individuals. • it redistributes wealth from wealthy consumers to highly innovative firms. Title: From an economic perspective, price discrimination is desirable because Post by: urbacore on Feb 27, 2019 Content hidden
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