The Labor Market: End of Chapter Problem9. Societies tend to permit some degree of price discrimination in product markets. For example, businesses discriminate inthe pricing of amusement park tickets based on age (children and senior citizens are often offered discounts) and automobileinsurance based on gender (men are often charged higher premiums than women). However, we do not permit discriminationin wage rates.Why do socities allow price discrimination but reject economic discrimination?Price discrimination is a natural right, but economic discrimination is a legal right.Price discrimination increases consumer surplus, but economic discrimination increases producer surplus, andsocieties care more about consumers than producersPrice discrimination can have both valid positive and normative justifications, but economic discrimination neverhas valid positive or normative justifications.Price discrimination is always necessary to promote competition among firms, but economic discrimination is notnecessary to promote competition among factors of production.

Meaning of Price Discrimination: The term price discrimination refers to the situation under which…

The Labor Market: End of Chapter Problem 9. Societies tend to permit some degree of price discrimination in product markets. For example, businesses discriminate in the pricing of amusement park tickets based on age (children and senior citizens are often offered discounts) and automobile insurance based on gender (men are often charged higher premiums than women). However, we do not permit discrimination in wage rates. Why do socities allow price discrimination but reject economic discrimination? Price discrimination is a natural right, but conomic discrimination is a legal right. O Price discrimination increases consumer surplus, but economic discrimination increases producer surplus, and societies care more about consumers than producers Price discrimination can have both valid positive and normative justifications, but economic discrimination never has valid positive or normative justifications. Price discrimination is always necessary to promote competition among firms, but economic discrimination is not necessary to promote competition among factors of production.

The Labor Market: End of Chapter Problem 9. Societies tend to permit some degree of price discrimination in product markets. For example, businesses discriminate in the pricing of amusement park tickets based on age (children and senior citizens are often offered discounts) and automobile insurance based on gender (men are often charged higher premiums than women). However, we do not permit discrimination in wage rates. Why do socities allow price discrimination but reject economic discrimination? Price discrimination is a natural right, but conomic discrimination is a legal right. O Price discrimination increases consumer surplus, but economic discrimination increases producer surplus, and societies care more about consumers than producers Price discrimination can have both valid positive and normative justifications, but economic discrimination never has valid positive or normative justifications. Price discrimination is always necessary to promote competition among firms, but economic discrimination is not necessary to promote competition among factors of production.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter23: Monopoly

Section: Chapter Questions

Problem 8QP

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