A price setter finds that it has
A) to accept the price the market sets.
B) some control over the price it charges.
C) the ability to set the price at whatever value it wants.
D) the ability to always earn an economic profit.
E) few competitors.

Question

Quizplus · Accepted Answer

A price setter has some control over the price it charges, which means it can potentially set the price higher or lower than the market price. However, this control is not unlimited and may be influenced by market conditions and competition. The other options are incorrect: A) accepting the market price means the company is a price taker, not a price setter; C) setting the price at whatever value it wants is unrealistic, as pricing decisions must take into account demand, costs, and competition; D) earning an economic profit is not guaranteed for any firm, including price setters; E) having few competitors does not necessarily mean the company is a price setter.

A Price Setter Finds That It Has