Explore BrainMass

Explore BrainMass

    This post discusses being a price maker or a price taker.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A dermatologist will have to perform serious due diligence to determine the demand, the market composition [demographics], the competition, and the level of risk. The new entrant in the market will need to anticipate how he can improve return on assets and plan risk management strategies that will help him overcome the potential start up problems.

    Will the dermatologist be a price maker or a price taker?

    © BrainMass Inc. brainmass.com April 3, 2020, 10:52 pm ad1c9bdddf

    Solution Preview

    The dermatologist is definitely a price taker. In order for the dermatologist to be a price maker, it would have to be a situation where the doctor has monopolistic power and a situation where there are no substitutes to the good or service produced. In the case of a dermatologist, this is not the case. A large percentage of people seeing a dermatologist don't necessarily require treatment, but they do so for optional treatments to look and ...

    Solution Summary

    The solution provides a good discussion regarding the dermatologist being a price maker or a price taker. References are also included.