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JAMB Economics 1988 Question 20

Question 20

Market Structures

One of the characteristics of an imperfect market is

  1. A.a large number of buyers and sellers
  2. B.a lack of homogeneity of products
  3. C.an adequate awareness of market conditions by buyers and sellers
  4. D.the availability of substitutes.
Show the answer and explanation

Answer: B (a lack of homogeneity of products)

Explanation

In imperfect markets products are differentiated (not identical); identical products, many traders and full information belong to perfect competition.