Question

Imperfect competition is: A. a market structure with no more than one firm in the industry. B. an industry in which all firms are price takers. C. a market structure where firms have a degree of monopoly power. D. described by all of the above.

Answer 1

Answer:

The correct answer is letter "C": a market structure where firms have a degree of monopoly power.

Explanation:

No single company influence price in Perfect Competition. There is no entry or exit barrier. All firms sell the same product or service, all of them have the same industry knowledge, and there are a large number of suppliers and buyers. If any of these conditions are not present, it is imperfect competition.

Imperfect competition can be found in monopolies, oligopolies, and monopolistic competition, to name but a few.