From an economic perspective, price discrimination is desirable because
A) the increase in profits is more than offset by the loss in consumer surplus, resulting in a net increase in economic surplus.
B) it redistributes wealth from wealthy consumers to highly innovative firms.
C) 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.
D) 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.
Question 2
The short-run supply curve for a perfectly competitive firm is that part of the firm's marginal cost curve that lies above the minimum point of its average variable cost curve.
Indicate whether the statement is true or false
economic question
economic question
economic question
economic question
economic question
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.