How Could Conditions of Imperfect Competition Explain Deviations from PPP

question 144

Multiple Choice

How could conditions of imperfect competition explain deviations from PPP?

• A) Imperfect competition means that prices are higher than costs and may not converge.
• B) Governments often restrict trade in those goods.
• C) Goods sold under conditions of imperfect competition are often inferior.
• D) Arbitrageurs do not recognize profit opportunities in these markets.

---

Definitions:

Gainsharing Plans

Programs under which both employees and the organization share financial gains according to a predetermined formula that reflects improved productivity and profitability.

Organizational Resources

The assets, capabilities, processes, and information that a company uses to improve its effectiveness and achieve its objectives.

Executive Compensation

The package of pay, benefits, and incentives provided to an organization's senior management, designed to attract and retain key executives.