Exhibit 23-9 Refer to Exhibit 23-9. The reason we know the firm represented in the exhibit is a price searcher and not a price taker is because

Question

Exhibit 23-9  Refer to Exhibit 23-9. The reason we know the firm represented in the exhibit is a price searcher and not a price taker is because

Quizplus · Accepted Answer

The fact that the firm's marginal revenue is not constant for all given levels of output indicates that it has some degree of market power, which is a characteristic of a price searcher. In contrast, a price taker must accept the market price and has no market power to influence it. Options A, B, and D are not necessarily indicative of whether a firm is a price searcher or price taker.