Two Possible Reasons for the Existence of an Imperfectly Competitive

question 76

Multiple Choice

Two possible reasons for the existence of an imperfectly competitive market are:

• A)product differentiation and free trade.
• B)constant returns to scale and a lack of market regulation.
• C)increasing returns to scale and barriers to free entry.
• D)a lack of market segmentation and "U" shaped marginal cost curves.
• E)none of the above.

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Definitions:

Income Distribution

The way in which total income is shared among the population or different segments of the economy.

Unequal

Lacking equality in size, quantity, or degree; not evenly distributed or balanced.

Lorenz Curve

The Lorenz Curve is a graphical representation of the distribution of income or wealth within a society, indicating the degree of inequality.

Equitable

Fair and impartial treatment, especially in matters of distribution of wealth, opportunities, and privileges within a society.