A common characteristic of all firms in imperfect competition is:
A) producing at a level of output at which they break even in the long run.
B) attempting to increase sales by lowering prices.
C) producing at a level of output at which price exceeds marginal cost.
D) a desire to use advertising in order to increase sales.

Question

Quizplus · Accepted Answer

In imperfect competition, firms have some market power, allowing them to set prices above marginal cost to maximize profits.

A Common Characteristic of All Firms in Imperfect Competition Is