Use the following to answer question(s): Correcting for Market Failure: Imperfect Competition

-(Exhibit: Correcting for Market Failure: Imperfect Competition) In this exhibit showing market failure, there is a(n) _______ competitive firm producing an output of ________.
A) perfectly; W
B) imperfectly; W
C) imperfectly; R
D) perfectly; R

Question

Use the following to answer question(s): Correcting for Market Failure: Imperfect Competition
 
-(Exhibit: Correcting for Market Failure: Imperfect Competition) In this exhibit showing market failure, there is a(n) _______ competitive firm producing an output of ________.
A) perfectly; W 
B) imperfectly; W 
C) imperfectly; R 
D) perfectly; R

Quizplus · Accepted Answer

In the exhibit, the firm has a downward sloping demand curve, indicating that it has some market power and is not a price taker in a perfectly competitive market. Therefore, the firm is producing under imperfect competition. The output produced by the firm is R, as indicated on the x-axis.

Use the Following to Answer Question(s): Correcting for Market Failure