How can price discrimination increase social welfare in some cases?
Posted by:
Rahul
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1
9
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2025-11-12
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Ravina
Nov 12, 2025
Price discrimination can increase social welfare when it lets more people use a product or service who can't afford it at one single price. For ex. a firm may charge rich customers higher price and poor customers lower price if they want. This will helps the firm cover costs and serve more consumers by which total output increases and more people benefit. It improves overall welfare in the economy.
9
Price discrimination can increase social welfare when it lets more people use a product or service who can't afford it at one single price. For ex. a firm may charge rich customers higher price and poor customers lower price if they want. This will helps the firm cover costs and serve more consumers by which total output increases and more people benefit. It improves overall welfare in the economy.