Which of the following is a primary difference between price takers and price searchers that operate in markets with low barriers to entry?
A) The price searchers will maximize profits in the short run, but price takers will not. Price takers can only maximize profits in the long run.
B) The price searchers will have to search for the price, while price takers will have to take the price determined in the market.
C) The price searchers will be able to earn profit in the long run, but the price takers will not.
D) The price searchers may be able to earn profit in the short run, but the price takers will not be able to do so.

Question

Quizplus · Accepted Answer

Price searchers have some control over the price they charge and must determine the optimal price, while price takers accept the market price as given due to their lack of market power.

Which of the Following Is a Primary Difference Between Price