Final answer:
The statement that imperfect markets are defined by the immobility of factors of production is false. Imperfect markets can arise from various issues, including but not limited to factor immobility, such as imperfect information or inadequate competition.
Step-by-step explanation:
Imperfect markets are characterized by conditions that make it difficult for the factors of production to operate efficiently. However, the statement that imperfect markets represent conditions under which factors of production are immobile is false. Immobility of factors of production is just one issue that might contribute to an imperfect market. Imperfect information, inadequate competition, and market power are examples of other issues that lead to market imperfections. Factor markets, where resources such as land, labor, and capital are traded, rely on the mobility of these resources to function effectively. When factors are immobile, it creates economic consequences such as reduced efficiency and potential market failures, where the factors of production cannot move freely to where they are most valued or needed. However, the existence of other imperfections like information asymmetry could still allow an imperfect market to exist without factor immobility.