Question

True or False: Because price searchers can set their prices, their prices are not affected by market conditions. True False

Answer 1

False Although price searchers (firms with market power) have some degree of control over the prices they charge, the prices they can set are still affected by market conditions such as the demand for their product, the availability of substitute products, and the behavior of their competitors.

Answer 2

Answer: False

Step-by-step explanation:

Although price searchers (firms with market power) have some degree of control over the prices they charge, the prices they can set are still affected by market conditions such as the demand for their product, the availability of substitute products, and the behavior of their competitors.