If an industry is imperfectly competitive, and markets are segmented then

Question

Quizplus · Accepted Answer

In an imperfectly competitive industry, firms may have market power and can engage in anti-competitive behavior such as dumping, which involves selling goods at a lower price in a foreign market than in the domestic market. If markets are segmented, then there may be different prices in different markets, and a firm may find it profitable to engage in dumping. Therefore, option C is the best choice. The other options are not necessarily related to imperfect competition and market segmentation.

If an Industry Is Imperfectly Competitive, and Markets Are Segmented