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A price maker: (a) is a characteristic held by a perfectly competitive firm
A price maker:
(a) is a characteristic held by a perfectly competitive firm.
(b) has some control over the price it charges.
(c) will always make economic profits.
(d) can sell its product at any price.
(e) must set the price at the market price.
Expert Solution
The firm becomes a price maker in the monopoly market, oligopoly market, and in the monopolistic competition (in the short-run). Now, consider the case of a monopoly, this is a market structure where goods or services are provided by only one firm which makes this market structure to be a price setter or price maker.
Furthermore, it deals with unique products and unique products are products which are not common in the market because they have no close substitutes. Therefore, the monopolist has control over the price which he charges in the market as other sellers are unable to produce that good.
Henceforth, the right option is B.
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