Which of the following is true of an imperfect market structure?

CA Foundation · Business Economics · MTP · September 2026
Which of the following is true of an imperfect market structure?
(A) A. participants in the market have little or no control over outcome in the market.
(B) B. consumer surplus is maximized.
(C) C. the maximization of producer surplus may lead to a loss of net benefit for society.
(D) D. imperfect market structures include monopolies but not cartels.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. the maximization of producer surplus may lead to a loss of net benefit for society.

Topics: Price Determination in Different Markets

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