The Main Difference Between a Firm That Is a Price

question 169

Multiple Choice

The main difference between a firm that is a price searcher and a firm that is a price taker is that a

• A) price searcher produces products that are identical to its competitors' products.
• B) price taker can decide what price to charge for its product.
• C) price searcher cannot decide what price to charge for its product.
• D) price searcher will still be able to sell some of its product if it increases its price.

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Definitions:

Effective Rate

The actual interest rate on an investment or loan, taking into account the compounding of interest, as opposed to the nominal rate.

Monthly Rate

The interest rate or any other rate measured over the period of one month, often expressed as a percentage per month.

Principal

The person (client) for whom a service is performed. Amount that is borrowed using credit.

Second Mortgage

A type of subordinate mortgage made while an original mortgage is still in effect, securing the collateral by the same property.