There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers. a. What are economic profits? Explain in detail. b. Do economic profits harm the interests of consumers? Explain in detail. c. Can there be a socially useful outcome when economic profits exist? Explain in detail. d. Do lower prices always benefit consumers? Explain in detail.

There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers. a. What are economic profits? Explain in detail. b. Do economic profits harm the interests of consumers? Explain in detail. c. Can there be a socially useful outcome when economic profits exist? Explain in detail. d. Do lower prices always benefit consumers? Explain in detail.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 9PA

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