A Price Maker Is

question 81

Multiple Choice

A price maker is

• A)a person who actively seeks out the best price for a product that he or she wishes to buy.
• B)a firm that has some control over the price of the product it sells.
• C)a firm that is able to sell any quantity at the highest possible price.
• D)a consumer who participates in an auction where she announces her willingness to pay for a product.

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Definitions:

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service, critical for decision-making in resource allocation.

Monopoly Price

The price set by a monopolist, which is typically higher and produces lower output than would be the case in a competitive market.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a good or service.