Unless markets are perfectly competitive, they may fail to maximize the total benefits to buyers and sellers.

Name: Unless markets are perfectly competitive, they may fail to maximize the total benefits to buyers and sellers.
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Question

Quizplus · Accepted Answer

In markets that are not perfectly competitive, such as monopolies or oligopolies, prices can be higher and output lower than in a competitive market, leading to a failure to maximize total benefits to buyers and sellers due to inefficiencies and market power.

Unless Markets Are Perfectly Competitive, They May Fail to Maximize