Imperfect Competition in Economics

• It increases the level of competition between sellers
• It results in perfectly elastic demand curves
• It causes market inefficiencies, resulting in market failure (correct)
• It leads to decreased market power for firms

• A situation where the market is dominated by a single supplier
• A situation where there is excessive competition leading to market inefficiencies
• A situation where the characteristics of an economic market do not fulfil all the necessary conditions of a perfectly competitive market (correct)
• A situation where demand and supply curves intersect

• A vertical demand curve
• A down-ward sloping demand curve (correct)
• An upward sloping demand curve
• A perfectly elastic demand curve

<p>Firms' ability to affect the price of a good and raise the market price above marginal cost (MC) (D)</p> Signup and view all the answers

<p>By measuring the degree of suppliers' market concentration (D)</p> Signup and view all the answers