Question

Which statement about imperfect competition is correct?

Options

• It is rarer than perfect competition in the real world

• It includes only monopoly as a market form

• Firms usually have some power to influence prices

• It excludes oligopoly and duopoly

Answer 1

Firms usually have some power to influence prices

Explanation:

In imperfect competition, firms generally have some control over price, unlike in perfect competition, where firms are price takers; this includes monopoly, monopolistic competition, oligopoly, and duopoly.