Please answer both question

Please answer both question you agree that there is no competition under perfect Competition? Explain. Or fxplain the relevance of the concept of price elasticity of demand to a monopolist,

Dear student

Yes,I agree there is no Price discrimination(competition) possible under perfect competition. This is because a firm cannot charge different prices for the identical product in the different segments of market. The reason for non-existence of price discrimination under perfect competition can be attributed to the following two features of perfect competitive market.
1. Firm is a price taker and not a price maker; hence, a firm has no control over the price of its product.
2. The product is identical and homogeneous in terms of shape, size, colour and feature.
3. Lastly, both the parties- buyers as well as sellers have perfect knowledge about the market conditions, hence, no single firm can charge buyers different prices. However, if it tries to do so, then it will end-up losing all its customers.


To find answer to your question. Please visit the following path

Chapter-6 (named as Non-Competitive Markets)- Lesson-2 (named as 'Monopolistic Competition and Short Run and Long Run Equilibrium')-under the topic 'Introduction' 


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