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.

Question

Quizplus · Accepted Answer

Imperfect competition refers to market structures that are not perfectly competitive, where firms have some degree of market power or monopoly power. This can include monopolistic competition, oligopoly, and monopoly. Therefore, option C is the most accurate description of imperfect competition. Option A is incorrect as it describes a monopoly, which is just one type of imperfect competition. Option B is incorrect as it describes perfect competition, which is the opposite of imperfect competition. Option D is incorrect as it includes options that don't accurately describe imperfect competition.

Imperfect Competition Is