In the factors of production market, how do households and firms interact?
A) Households are sellers and firms are buyers.
B) Households are buyers and firms are sellers.
C) Households and firms are both buyers.
D) Households and firms are both sellers.

Question

Quizplus · Accepted Answer

In the factors of production market, households sell their labor, land, and capital to firms, making them the sellers. Firms buy these inputs to produce goods and services, making them the buyers.

In the Factors of Production Market, How Do Households and Firms