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tlc_71111 tlc_71111
wrote...
Posts: 507
5 years 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.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 80 times
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Do What Makes You Come Alive
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urbacoreurbacore
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Posts: 367
5 years ago
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tlc_71111 Author
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5 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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This calls for a celebration Person Raising Both Hands in Celebration
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2 hours ago
You make an excellent tutor!
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