What are price makers and price takers?
Price makers (price setters, price searchers) are firms that determine the quantity they produce and the price at which they sell their product. Firms in a monopolistic, monopolistically competitive, or oligopolistic market are price makers. Price takers are business firms that are forced to take the market price for their products: individually, there is nothing they can do to change the market price. Firms in perfectly competitive markets are price takers. If a single firm tries to raise its price even a little bit, buyers immediately will switch to other sellers.
