When setting prices, a company must consider whether it is a price-taker or a price-setter for each product that it sells.

Question

Quizplus · Accepted Answer

A company must consider market demand and competition when setting prices for each product. If the company can set prices independently without much competition, it is a price-setter. However, if the company has little control over the price due to strong competition, it is a price-taker.

When Setting Prices, a Company Must Consider Whether It Is