Module 5 chp 25 Number 8 part 1

Module 5 chp 25 Number 8 part 1 - perfect competition there...

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This demand schedule does not apply to a perfectly competitive firm because the firm is using a price discrimination strategy. To some buyers, who value the good more, the firm is charging a high price and to other buyers, who do not value the good as much, the price charged is less. Such a strategy is not possible in a perfectly competitive firm since in
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Unformatted text preview: perfect competition there are large number of buyers and sellers and sellers are price takers and have no control, whatsoever, on the price that they charge. Charging different prices to different customers implies that the firm has at least some degree of monopoly power....
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