A firm that has the ability to control to some degree the price of the product it sells
A)is also able to dictate the quantity purchased.
B)faces a demand curve that is inelastic throughout the entire range of market demand.
C)is a price maker.
D)faces a perfectly inelastic demand curve.

Question

Quizplus · Accepted Answer

A firm that has the ability to control the price of the product it sells is known as a price maker. This means that the firm can adjust the price without affecting the quantity demanded to a significant degree. However, it does not necessarily mean that the firm can completely dictate the quantity purchased. Additionally, the demand curve for the product may not be inelastic throughout the entire range of market demand.

A Firm That Has the Ability to Control to Some