When Setting Prices,a Company Must Consider Whether It Is a Price-Taker

question 201

True/False

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

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Definitions:

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, commonly seen in situations where the activity of one entity leads to positive effects for others.

Fire Extinguishers

Safety devices used to extinguish or control small fires, often in emergency situations.

External Benefit

A positive effect on a third party or the society at large, generated by the production or consumption of a good or service.

Externalities

Costs or benefits of a market activity borne by a third party; can be negative (costs) or positive (benefits).