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InterviewSolution
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Price discrimination is not possible in case of |
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Answer» Perfect competition Price discrimination is not possible in case of Perfect competition. Price discrimination is not possible under perfect competition, even if the two markets could be kept SEPARATE. Since market DEMAND in each market is perfectly elastic, every seller would try to sell in that market in which could get the highest price. Competition would make the price EQUAL in both the markets. However, price discrimination is possible and profitable only when markets are IMPERFECT. |
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