Question

Imperfect monopoly is a single firm industry where ___________________.

• A. The cross elasticity in the market is zero
• B. The cross elasticity of demand between the product of the firm and that of other commodities in the market is small, though it is above zero
• C. The price elasticity to the market is zero
• D. The income elasticity to the market is zero

Answer 1

Answer: (B)

The cross elasticity of demand between the product of the firm and that of other commodities in the market is small, though it is above zero

In economic theory, imperfect competition is a type of market structure showing some but not all features of competitive markets. Forms of imperfect competition include: Monopolistic competition: A situation in which many firms with slightly different products compete. The cross elasticity of demand between the product of the firm and that of other commodities in the market is small, though it is above zero