Description 
Marge realizes that, as her restaurant 
gets bigger, the amount she spends on 
ostrich meat is also getting bigger. She 
decides to visit Mort, an ostrich farmer 
and her primary supplier, to see if he 
won't lower his prices for her. Mort, 
however, says that if her lowers his 
prices, he will be losing money, since 
every ostrich farmer charges the same 
price--the market price. There is 
nothing special about ostrich farming 
anymore--lots of farmers are raising 
ostriches and lots of producers are 
buying ostrich meat. However, Mort 
invites Marge to stay in touch, because 
he is developing a special type of ostrich. 
 

Perfect Competition
Story 

Audio Transcript 

Marge: I sure am spending a lot on ostrich meat every month. I'm gonna drive out to Mort's ostrich farm, see if I can't talk him down some. 

Mort: Hmmm… 

Marge: Howdy Mort, how're the big birds treatin' ya these days? 

Mort: Pretty good, Marge, what brings you way out here on such a hot day? 

Marge: Well Mort, I've been buying ostrich meat from you for years now... 

Mort: Uhh-huh. 

Marge: ...and since my restaurant keeps getting bigger, I keep ordering larger quantities of meat. 

Mort: Yep. 

Marge: I've been thinking Mort....I've gotta be one of your best customers. I'm here to see if you can cut me a better deal on buyin' large quantities of your ostrich meat. 

Mort: Well, Marge, I'd love to help ya, you know I would, but I'd be losin' money if I lowered my prices for ya. I’ve got plenty of other customers willing to pay the market price. 

Marge: You know, Mort, I could take my buisness elsewhere. 

Mort: That’s your decision, Marge, but everybody charges the same price—the market price. 

Mort: You see, there's no secret to producing good ostrich meat anymore. So now there’s lots of farms selling it and lots of people buyin' it. 

Marge: So, can you cut me a break on price? 

Mort: I'm sorry, my hands are tied for now. But you stay in touch Marge, 'cause I'll give you first dibs on some real special ostriches that I've been raisin'. 

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