When individual firms set their own prices-sometimes holding them steady for long periods of time-rather than letting daily market forces determine prices, such prices are called:
A) flexible prices.
B) parallel prices.
C) equilibrium prices.
D) administered prices.
E) fixed prices.

Question

Quizplus · Accepted Answer

Administered prices are when individual firms set their own prices rather than letting market forces determine them. These prices may be held steady for long periods of time instead of being flexible or constantly changing.

When Individual Firms Set Their Own Prices-Sometimes Holding Them Steady