A firm that can determine the price-output combination in order to maximize profit is known as a
A) price searcher.
B) price taker.
C) demand searcher.
D) cost taker.

Question

Quizplus · Accepted Answer

Price searcher firms have some degree of market power, allowing them to determine the price-output combination that maximizes their profit. Price takers, on the other hand, have no market power and must accept the market price. Demand searcher and cost taker are not commonly used terms in economics.

A Firm That Can Determine the Price-Output Combination in Order