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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What is meant by the natural rate of unemployment?
What will be an ideal response?
Explain how two Bertrand price competitors can price above marginal cost in an infinitely repeated game setting.
What will be an ideal response?
The quantity of money people want to hold increases if
A) the price level falls. B) the nominal interest rate rises. C) real GDP increases. D) All of the above answers are correct.
In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:
a. 1.0 and 2.0 percent. b. 2.5 and 3.5 percent. c. 4.5 and 5.5 percent. d. 6.5 and 7.5 percent.