An imperfectly competitive firm is one that
A) has some degree of influence over the price it charges for its output.
B) finds it difficult to compete.
C) charges any price it wishes.
D) maximizes revenue.
E) confronts a perfectly inelastic demand curve.

Question

Quizplus · Accepted Answer

An imperfectly competitive firm has some degree of influence over the price it charges for its output, meaning it can raise the price and still sell some of its output or lower the price and sell more. The other choices do not fully describe an imperfectly competitive firm.

An Imperfectly Competitive Firm Is One That