Input and output markets operate independently and thus should be analyzed as separate entities.

Name: Input and output markets operate independently and thus should be analyzed as separate entities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Input and output markets are interconnected because the output of one industry can be the input of another, and the demand for inputs is derived from the demand for the outputs they help produce. This interdependence means they influence each other and should not be analyzed in isolation.

Input and Output Markets Operate Independently and Thus Should Be