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From an economic perspective, price discrimination is desirable because

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From an economic perspective, price discrimination is desirable because

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.

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

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More solutions for this book are available here

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tlc_71111 Author

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Thanks

54321abs

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Good timing, thanks!

Chaldoren

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Thank you, thank you, thank you!

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