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wrote...
Posts: 174
2 months ago
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.
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Microeconomics
Edition: 7th
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Posts: 166
2 months ago
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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.
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