Firms sell their products in________________?
Correct answer: C. product markets
- A. factor markets
- B. resource markets
- C. product markets
- D. abstract markets
Explanation
Firms sell finished goods and services in product markets, while they buy labour, land, capital, and other inputs in factor or resource markets. Thus the relevant market for their sales is the product market.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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