The essential feature that differentiates imperfectly competitive firms from perfectly competitive firms is that an imperfectly competitive firm:
A)produces a good with no close substitutes.
B)faces high barriers to entry.
C)coordinates their output decisions with other firms.
D)faces a downward-sloping demand curve.

Question

Quizplus · Accepted Answer

The essential difference between perfectly competitive firms and imperfectly competitive firms is that a perfectly competitive firm faces a horizontal demand curve while an imperfectly competitive firm faces a downward-sloping demand curve.

The Essential Feature That Differentiates Imperfectly Competitive Firms from Perfectly