There are 3 necessary conditions for Price Discrimination. what are they?

Question

Can someone explain me the one that said that firms cannot be a price taker (perfect competitor)?

Answer 1

If you are a price taker, it means that you can set or fix the price of goods or services. Whatever is the market price, that is what you will have to charge everybody. For example, you are selling lemons in a very large farmers' market. There are hundreds of farmers. They are all selling lemons at $1.00 per pound. Every buyer knows that the price is $1.00 per pound. Then you too must sell your lemons at $1.00 per pound. If you try to sell at $2.00 per pound, NOBODY will buy from you. You must take the market price of $1.00 per pound. You cannot fix the market price. To practice price discrimination you must be able to sell to different groups at different prices. If you are a price taker you cannot sell at different prices but only at the market price. Note that if you try to sell below the market price of $1.00 per pound you will not be making any profits and you will soon go out of business. As a price taker you have no choice but to accept the market price and to sell your goods at that price.