In imperfectly competitive markets, "administered" prices usually changeperfectly competitive markets, because _ .

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In imperfectly competitive markets, firms have some degree of market power, which allows them to set prices above the marginal cost. Changing prices in such markets incurs some adjustment costs, such as menu costs or informational costs. Therefore, firms tend to change prices less often in order to avoid these costs, resulting in administered prices. In contrast, in perfectly competitive markets, firms have no market power and are price takers, so they can adjust prices freely without incurring any costs. Therefore, prices in perfectly competitive markets change more often than in imperfectly competitive markets.

In Imperfectly Competitive Markets, "Administered" Prices Usually Changeperfectly Competitive Markets