The resource market is different from the product market because _____
A)firms don't maximize profit in the resource market.
B)households don't maximize utility in the resource market.
C)firms are demanders and households are suppliers in the resource market.
D)supply and demand do not apply in the resource market.
E)supply and demand do not apply in the product market.

Question

Quizplus · Accepted Answer

In the resource market, firms are demanders of resources such as labor and raw materials, while households are suppliers of these resources. In contrast, in the product market, firms are suppliers of goods and services and households are demanders. Therefore, the resource market is different from the product market because it involves a different set of participants and roles. The other answer choices are either incorrect (A and B) or too extreme or vague (D and E).

The Resource Market Is Different from the Product Market Because