Question

What does price-maker mean?

Answer 1

A price-maker is a firm that can establish or influence the price of its product, which is typically found in markets with little or no competition, such as monopoly or oligopoly Price-makers, unlike firms in perfect competition, can set their pricing based on their expenses and profit goals. For example, due to a lack of substitutes, a city’s power board can determine its pricing. This provides the company greater control over the market and its earnings.