Question

As a price searcher, a monopoly firm?

Answer 1

Yes because the monopoly will always charge the price that will maximize the profit.Therefore monopoly behave as a price searcher trying differen price level and ending up at a price level where he earns the maximum . The price searcher cannot be a competititive firm as in the competitive structure the number of firms are large so if firm behave as a price searcher and choose a price that maximize his profit will always end up choosing price = MC. Thiswill only help him sustain.