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by czr80
5109 days ago
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From the trades that don't happen because the producer can't sell to certain segments at a lower price (for fear of reducing his profit on other segments). I suppose it's worth noting that this isn't an issue in perfectly competitive markets (since there price = marginal cost). But, outside econ-101, there aren't really many perfectly competitive markets. By the way, as I mentioned in my first post, I definitely agree this is about capturing consumer surplus too. |
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