Individual firm demand curve for a perfectly competitive firm-

• Individual firm Demand curve for perfect competitive is perfectly elastic and flat curve because individual firm in perfect competition has inability to influence the price.
• Individual firms have no control on price. Therefore they are price taker in the market.

Individual firm demand curve for a monopolist-

• Individual firm demand curve for monopolist is perfectly inelastic because individual act as a monopolist and if firm want to sell more output firm can decrease the price
• Individual firm has full control over price and act as price maker in the market.

Market demand curve for a perfectly competitive firm-

• Market demand curve for perfect competitive is downward slopping curve because the market follows law of demand.

Market demand curve for a for a monopolist-

• Market demand curve of monopolist is same as individual demand curve because in long run monopolist demand curve become market demand curve

Merger is the strategy of combining two or more firms or companies to enhance the profit sharing and fair distribution of output. Merger includes the consensus of joining and forms into single entity in the market.

Some recent merger- Merger in telecommunication industries (Vodafone and idea), global payment system and total system service.

i. Law passed in the United States between 1915 to prevent the large firms to combining into monopolies to restrict the competition. In apple antitrust case USA government use price fixing case

ii. US antitrust case in which the Court held that Apple Inc. conspired to raise the price of e-books in violation of the Sherman Act.

iii. Microsoft, Dell, Sony

Monopolist use price discrimination as a strategy of selling goods at different price for different section of society in this way monopolist maximize their profit called it as third degree of price discrimination also known as direct price discrimination.

1st degree of price discrimination-\

Firm create distinction in the market for each individual consumer and charge the price from them which they are desire to pay and ability to pay. If firm get success in his strategy then plug entire consumer surplus and create his surplus profit

2nd degree of price discrimination-\

Monopolist starts selling the product at lower price to the targeted consumer. Consumer is already in the capacity to pay then further price start falling when quantity brought increases.

3rd degree of price discrimination-\

At this stage monopolist are in the stage of producer surplus and start charging different price to different section of society for the same goods. These sections of society are distinct in the respect of age, sex, area,

Condition necessary for price discrimination

• Monopolist able to control supply
• Monopolistic prevent resale of goods from one firm to another firm
• Elasticity of price is different in different section of market