GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imperfect competition arises when
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Product variation, ignorance of consumers and distance and transport costs lead to imperfections in the competitive market which operates on certain assumptions
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There are unexplainable imperfections in the market
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There is imperfect rivalry among competitors
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Competition does not exist
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Explanation:
Detailed explanation-1: -Definition: Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario. As the name suggests, competitive markets that are imperfect in nature.
Detailed explanation-2: -Imperfect competition can be found in the following types of market structures: monopolies, oligopolies, monopolistic competition, monopsonies, and oligopsonies.
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