Microeconomics Question from Walter E. Williams:Edit

Price discrimination may lead to more efficient allocation of resources. Do you agree or disagree? Explain first what you mean by efficient allocation of resources.


Efficient allocation of resources is one in which all exchange opportunities have been realized. Price discrimination is efficient because it captures for the producer o9the maximum that each consumer is willing to pay, without any net loss to society. Consumers do not lose because they are still only paying for a good the value they place on having that good. Price discrimination also can lead to a larger output.

Other Questions:Edit

Previous: WEW-107

WEW Questions 101-111

Ad blocker interference detected!

Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.