The term "price setter" refers to a firm that faces a downward-sloping demand curve and must therefore set the combination of output and price that will maximize the firm's profits.

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A price setter is a firm that has some degree of market power, allowing it to set the price for its product or service. This is typically achieved when the firm faces a downward-sloping demand curve, meaning that as the price of the product decreases, consumers will demand more of it. In order to maximize its profits, the price setter must find the optimal combination of price and output that will maximize its revenue while also taking into account its costs. This differs from a price taker, which is a firm that has no market power and must accept the prevailing market price for its product.

The Term "Price Setter" Refers to a Firm That Faces