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Imperfect Market

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Imperfect market
Economic environment in which the costs of labor and other resources used for production encourage firms to use substitute inputs that are less costly.

Imperfect Market
1. See: Market inefficiency.

2. A market where costs are too high, encouraging producers either to stop producing or to find ways to lower costs. For example, if labor costs are too high in an imperfect market, producers have an incentive to lower salaries, lay off employees, or cease operations altogether.


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But it can provide a political framework and institution-building support to improve the deficiencies that made these countries so vulnerable to the crisis: imperfect market economies, weak state institutions, and continued corruption.
The combination of an imperfect market and inertia ensures that any price change is gradual.
The most important characteristic of a CEO labor market is that it is an imperfect market that functions under conditions of imperfect competition.
 
 
 
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