An economic analysis of "planned obsolescence" shows that

Question

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Economic analysis suggests that firms will produce longer-lived products if the additional cost of doing so is less than the present value of the benefits received by consumers. In other words, if consumers are willing to pay for a longer-lived product, and the additional cost of producing that product is less than the value of the extra benefits to consumers, then it makes sense for the firm to produce a longer-lived product. This applies to both monopolies and competitive firms, although monopolies may have more control over their pricing and product offerings, and may therefore be more likely to engage in planned obsolescence.

An Economic Analysis of "Planned Obsolescence" Shows That