Question

Which of the following is NOT true about imperfect competition?

1Imperfect competition among buyers gives them bargaining power.

2Greater product differentiation decreases market power.

3Sellers with market power can use independent pricing strategies.

4A smaller number of sellers in a market increases market power.

Answer 1

Answer option 2)

with product Differentiation, a seller , by differentiating its product with other similar products, can act like a monopoly in that product , by making the changes in product characteristics,

Thus leading to higher price setting market powers

So 2) isn't true

1)2)3) are true