Is there price discrimination in monopolistic competition? why or why not

Is there price discrimination in monopolistic competition? why or why not

 

 

 

answer:

No, there is no price discrimination in monopolistic competition.

Explanation:- Monopolistic competitive firm does not have full control over the price of its product because there are other competitors in the monopolistic competitive market and also there are large number of close substitutes of product available in this market. Since the firms in monopolistic competition do not have full control over the price of their products, accordingly, the possibility of price discrimination is not there in the monopolistic competition.

The possibility of price discrimination is found generally in monopoly form of market where monopolist charges different prices from different consumers for the same product / commodity. Monopolist can excercise price discrimination because he is having complete control over the price of product produced by him. Monopolist is a price maker as he can fix whatever price he wishes to fix for his product.

Conclusion:- There is no price discrimination in monopolistic competition.

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