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Questions and Answers
How does imperfect competition impact market inefficiencies?
How does imperfect competition impact market inefficiencies?
- 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
What does imperfect competition refer to in economics?
What does imperfect competition refer to in economics?
- 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
What type of demand curve does an imperfect market face?
What type of demand curve does an imperfect market face?
- A vertical demand curve
- A down-ward sloping demand curve (correct)
- An upward sloping demand curve
- A perfectly elastic demand curve
What does the degree of market power refer to?
What does the degree of market power refer to?
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How is market structure determined?
How is market structure determined?
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