Evaluate the following statement?

Evaluate the following statement: Price Discrimination is not possible when a good is sold in a competitive?

  • Answer:

    If I'm not mistaken, what you may be trying to say is that Price discrimination is not possible when a good is sold in a Purely Competitive Market The reason is that in a purely competitive market, the produce does not set the market price. The market itself sets the price, therefore charging less than others will cause a loss, while charging more than others is just useless since the product is more or less the same as your competitors.

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