ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a market structure in which a large number of firms all produce the same products
|
|
|
a market structure that does not meet the conditions of perfect competition
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Imperfect markets do not meet the rigorous standards of a hypothetical perfectly or purely competitive market. Imperfect markets are characterized by having competition for market share, high barriers to entry and exit, different products and services, and a small number of buyers and sellers.
Detailed explanation-2: -Imperfect competition exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical perfect competition. In this environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit.
Detailed explanation-3: -In a perfectly competitive market, the sellers sell identical products. While the sellers in the case of an imperfectly competitive market sell non-identical products. This means that sellers in the imperfectly competitive market choose their own specialties according to their knowledge and choice.
Detailed explanation-4: -In economics, imperfect competition refers to a situation where the characteristics of an economic market do not fulfil all the necessary conditions of a perfectly competitive market. Imperfect competition will cause market inefficiency when it happens, resulting in market failure.
Detailed explanation-5: -Past tense (perfect) This kind of past tense is called a perfect tense. It is used to describe an action in the past which is completed. To describe a past action or state which is incomplete, we use an imperfect tense. This tense indicates an action which has gone on over a period time or has happened frequently.