Also known as price setters. Firms that have market power face a downward sloping demand curve for their product (as opposed to the industry demand curve which relates price to the output of all firms). Ideally firms will set the price of their output to maximize profits (maximize the value of the equity of the firm more precisely). However, to set the value maximizing price of output the firm needs to know the demand schedule that it faces and that is difficult to determine. Instead the firm may undertake price adjustments (price seeking) to get to the optimal price.