i) Briefly describe why firms in perfectly competitive markets cannot engage in price discrimination. ii) Suppose you are the owner of a hostel in a rural town, which is the only hostel available for local farm workers to stay in. You work out that you can increase your profits by offering farm workers the choice to pay per night, per week, or per month. What type of price discrimination are you engaging in (if any) and what are the effects of this on economic efficiency (welfare effects) compared to just charging the monopoly price? 7 AY B