The main difference between a firm that is a price searcher and a firm that is a price taker is that a
a. price searcher produces products that are identical to its competitors' products.
b. price taker can decide what price to charge for its product.
c. price searcher cannot decide what price to charge for its product.
d. price searcher will still be able to sell some of its product if it increases its price.
D
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If the relative price of pizza in terms of movies is 3, this means that
A) the opportunity cost of a pizza is 3 movies. B) 3 pizzas can be traded for 9 movies. C) in terms of the dollars that must be spent to buy the product, pizza is more expensive than movies. D) All of the above answers are correct.
A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals
A) 1. B) 0. C) 2. D) Not enough information is provided.