I believe price searcher does not apply to pure competitive market. Is it true? My understanding is price searcher means who will research to decide at what price to sell product? Does it apply to only Monopoly? Appreciate help
competitive mkts are price takers monopolistic and monopoly are price searchers.
You are right that firms in pure competition don’t search for the price. The price is given to them and if they attempt to charge a penny more they sell nothing. Monopolists search for an optimal price, as do oligopolists or even monopolistic competitors (e.g., firms engaged in monopolistic competition; e.g., breakfast cereal). With oligopoly and monopolistic competition though, firms are constrained by competition from changing price very much.
Perfect competitve market participants are price takers because their demand curve is horizontal. I believe price searchers are only in monopoly market.
Anyone who faces a demand curve that is downward sloping is a price searcher as they will search for the price that maximizes (utility?, consumer and producer surplus?, profit?) ahhhhh the detailsssss
Thanks for replies. I thought price searcher is only for Monopoly. I will remember that downward demand sloping is a price searcher.