A firm that faces a downward sloping demand curve is known as a
A) price taker.
B) utility maximizer.
C) price searcher.
D) perfect competitor.

Question

Quizplus · Accepted Answer

A firm that faces a downward sloping demand curve has some control over the price they charge and is therefore a price searcher. A price taker is a firm that has no control over the price and must accept the market price. A perfect competitor is a type of price taker. Utility maximization is a concept related to consumer behavior and is not applicable to a firm's market structure.

A Firm That Faces a Downward Sloping Demand Curve Is