A price maker is
A)a person who actively seeks out the best price for a product that he or she wishes to buy.
B)a firm that has some control over the price of the product it sells.
C)a firm that is able to sell any quantity at the highest possible price.
D)a consumer who participates in an auction where she announces her willingness to pay for a product.

Question

Quizplus · Accepted Answer

A price maker is a firm that has some control over the price of the product it sells. This means that the firm is able to set a price that is higher than the marginal cost of production, allowing them to earn a profit. The degree of control a price maker has over the price varies depending on factors such as the level of competition in the market and the availability of close substitutes for the product.

A Price Maker Is