Compare and Contrast the Effect of Perfect Competition to the Effect

question 116

Essay

Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:
a) efficiency.
b) consumer surplus.
c) economic profit in the long run.

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Definitions:

Reward Power

The ability to influence others' behavior by offering positive incentives or rewards.

Expert Power

Influence wielded by an individual due to their expertise, skills, or knowledge, which others perceive as valuable.

Referent Power

A form of influence based on the attractiveness and charisma of the leader or influencing agent.

Expert Power

The influence one possesses as a result of expertise, skills, or knowledge, which others perceive as valuable or essential.