In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service.

Question

Quizplus · Accepted Answer

In most markets, there are some barriers to entry, imperfect information, and market power of some firms, which result in some departures from perfect competition and lead to a loss of economic efficiency. However, it should be noted that the degree of efficiency loss varies from market to market and depends on the specific market structure and conditions.

In Reality, Because Few Markets Are Perfectly Competitive, Some Loss