A characteristic common to most imperfectly competitive markets is

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One of the key features of imperfectly competitive markets is the use of non-price competition, such as advertising or product differentiation, by firms to attract customers. This is in contrast to perfectly competitive markets, where all firms sell an identical product and compete solely on price. In addition, inelastic market demand curves (A) may be present in some imperfectly competitive markets, but this is not a defining characteristic. Unexploited economies of scale (B) refer to a situation where a firm has the potential to decrease its average costs by producing at a larger scale, but is not currently doing so. This is not necessarily related to market structure. Common pricing among firms (D) is typically only seen in collusive oligopoly, which is one type of imperfect competition, but not a characteristic of all imperfectly competitive markets. A homogeneous product (E) is a defining feature of perfectly competitive markets, not imperfectly competitive ones.

A Characteristic Common to Most Imperfectly Competitive Markets Is