A seller that evaluates the costs and revenues of operating at different points on its downward-sloping demand curve in order to find the point where profit is maximized is a:
A) price taker.
B) follower firm.
C) price searcher.
D) pure competitor.

Question

Quizplus · Accepted Answer

A price searcher is a firm that determines its own price through the quantity of goods it decides to supply, based on its evaluation of the demand curve. Unlike price takers, who accept the market price as given, price searchers actively seek the profit-maximizing price by adjusting output to meet the demand at the price they set.

A Seller That Evaluates the Costs and Revenues of Operating