A firm that has the ability to control to some degree the price of the product it sells A.faces a perfectly inelastic demand curve. B.is also able to dictate the quantity purchased. C.faces a demand curve that is inelastic throughout the entire range of market demand. D.is a price maker.

Under the monopoly there is full control on the price while under the monopolistic competition there is a partial control on price. Price Maker - Actually in economics, a price maker is a monopolistic company that can dictate the prices of its goods because there are no substitutes for it. No substitutes allows firm to have some control on the price. Therefore, Option D is right.

Answered: A firm that has the ability to control…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm that has the ability to control to some degree the price of the product it sells

faces a perfectly inelastic demand curve.

is also able to dictate the quantity purchased.

faces a demand curve that is inelastic throughout the entire range of market demand.

is a price maker.

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