Which of the following is NOT true about imperfect competition?
A)Greater product differentiation decreases market power.
B)A smaller number of sellers in a market increases market power.
C)Imperfect competition among buyers gives them bargaining power.
D)Sellers with market power can use independent pricing strategies.

Question

Quizplus · Accepted Answer

Greater product differentiation typically increases market power, not decreases it, as consumers may be willing to pay a premium for a unique product. The other statements are generally true about imperfect competition.

Which of the Following Is NOT True About Imperfect Competition