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)</p> Signup and view all the answers

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