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To increase its profit, a perfectly competitive firm could use price discrimination

Accounting

To increase its profit, a perfectly competitive firm could use price discrimination. True False Question 4 1 pts Holding everything else the same, in a comparison/contrast of perfect competition and monopoly, the output of a perfectly competitive industry is ______ and the selling price is smaller, lower larger, lower larger, higher smaller, higher

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False. The answer of the first question is false because in a perfectly competitive firm there is no chances of price discrimination. Price discrimination is not possible in perfect competition. Price discrimination means charging different price to different customers and charging different price of different product to different customers so according to the characteristics of perfect competition that is perfect knowledge about the market which means both the customer and the producer both have the perfect knowledge. So, their is no chances of selling same product in different prices to customers.

Answer of second question is 2.i.e holding everything else same in a comparison contrast and the perfect competition and Monopoly the output of a perfect competition industry is larger than the Monopoly and the selling price is lower than the Monopoly because of the following reasons. Because some of the characteristics of perfect competition define it well such as very large number of buyer and sellers, homogenity of product, freedom of entry and exit and no selling a transportation cost, perfect knowledge

As compared to the Monopoly where a single seller will sell a product at Higher price because of some characteristics of the Monopoly such as single seller price discriminatio, product differentiation. So in perfect competition because of the very large numbers of buyer and seller every producer will sell more output at least price compare to monopoly.

Hope you understand the answers if you want i can explain the characteristics of perfect competition and monopoly for more clarification and if you have any query then please ask in comments i Will there for you and help you asap.