passwella.
Menu

JAMB Economics 2001 Question 22

Question 22

Market Structures

An imperfect market exists where

  1. A.the product is homogenous
  2. B.there is perfect information among the few buyers and sellers
  3. C.both buyers and sellers have free entry into and free exit from the market
  4. D.the location of some sellers gives them an advantage over others
Show the answer and explanation

Answer: D (the location of some sellers gives them an advantage over others)

Explanation

A seller's location advantage means the market is not perfect; the other options are features of perfect competition.