Imperfect competition occurs where there are many firms that produce an indistinguishable product or serve that no single producer has the power to affect the price of that product or service

Question

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Imperfect competition occurs when there are a few large firms in a market, and each firm has some degree of market power that enables them to affect the price of their product or service. This is in contrast to perfect competition, where there are many small firms that produce identical products and have no market power.

Imperfect Competition Occurs Where There Are Many Firms That Produce