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Although price discrimination never occurs in perfect competition,it may occur in monopolistic competition.
Price Discrimination
Price discrimination involves a seller charging different prices for the same product or service to different customers, based on factors like demand, customer attributes, or purchase volume.
Monopolistic Competition
Monopolistic competition describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.
Perfect Competition
A market structure characterized by many buyers and sellers, identical products, and free entry and exit, leading to efficient outcomes.
- Learn about the concept of price discrimination and identify the prerequisites for its application.
- Analyze the contrasts among different market systems, including perfect competition, monopolistic competition, oligopoly, and monopoly.
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Learning Objectives
- Learn about the concept of price discrimination and identify the prerequisites for its application.
- Analyze the contrasts among different market systems, including perfect competition, monopolistic competition, oligopoly, and monopoly.
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