A perfectly competitive firm cannot practice price discrimination because
A)a firm that breaks even in the long run cannot afford to engage in yield management.
B)it does not advertise; this prevents the firm from marketing its product to different segments of the market.
C)each consumer in a perfectly competitive market has the same willingness to pay.
D)the firm can only charge the market price.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the firm is a price taker, meaning it cannot set the price for its product. It can only charge the market price which is predetermined by the forces of supply and demand. Therefore, price discrimination is not possible.

A Perfectly Competitive Firm Cannot Practice Price Discrimination Because