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

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

A) is also able to dictate the quantity purchased

B) faces demand curve that is inelastic throughout the range of market demand

C) is a price maker

D) faces a perfectly inelastic demand curve

Answer

Answer - C) is a price maker

A price maker is that have the ability to control to some degree the price of the product it sell. These firms can determine the price and output. These firms have substantial control over price.
However, the price maker cannot fix any price. To sell more, the price maker too has to decrease the price. Therefore, a price maker always have a downward sloping demand curve.

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