True or false explain your answer In a situation where all economic agents are perfectly informed...

True or false explain your answer

In a situation where all economic agents are perfectly informed firms are still able to" price discriminated"

Expert Solution

Answer- False

In a situation where all economic agents are perfectly informed firms are still able to" price discriminated" , this statement is False. Because in economics, perfect information (sometimes referred to as "no hidden information") is a feature of perfect competition. With perfect information in a market, all consumers and producers have perfect and instantaneous knowledge of all market prices, their own utility, and own cost functions. Complete information is an economic situation in which knowledge about other market participants is available to all participants. So, in case of perfect information there is no possibility of price discrimination. In a situation where all economic agents are perfectly informed firms are not able to 'price discriminated'. Price discrimination is possible where the imperfect information exists, where buyers do not have all the necessary information to make informed decision about the price or quality of a product.

Rahul Sunny answered 2 years ago

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