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Answer to Question #226382 in Economics for Maggy
Question #226382
Why is price discrimination not possible under perfect market conditions?
Expert's answer
A Price-Setting Firm The firm must have some degree of monopoly power—it must be a price setter. A price-taking firm can only take the market price as given—it is not in a position to make price choices of any kind. Thus, firms in perfectly competitive markets will not engage in price discrimination.
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