Question

Imperfect competition is most likely to exist when ______.

Options

• All firms sell identical products at one uniform price

• Buyers and sellers have full information about prices and quality

• At least one condition of perfect competition is not fulfilled

• There is free entry and exit of firms

Answer 1

Imperfect competition is most likely to exist when at least one condition of perfect competition is not fulfilled.

Explanation:

Imperfect competition arises when any one of the conditions of perfect competition, such as identical products, perfect information, or free entry and exit, is violated.