Question

In: Economics

What is output market? What are the roles of firms and households in output markets?

What is output market? What are the roles of firms and households in output markets?

Solutions

Expert Solution

Output market which are also known as product market are markets for exchange of final goods and services in a circular economy between households and firms. While selling final goods and services in the economy in the output market, firms are the sellers of the goods and services who receive money in exchange of providing their goods and services to the households and whereas households are the buyers for these final goods and services who pay firms for purchasing from them final goods and services in the output market.

Below is circular economy diagram showing the flow of income to and from the output market.

Rahul Sunny answered 9 months ago
Next > < Previous

Related Solutions

ECON 2307 Week 2 Discussion 1. What are roles (activities) of households, firms, and governments in...
ECON 2307 Week 2 Discussion 1. What are roles (activities) of households, firms, and governments in an economy? 2. What is nominal GDP? Why do we need to calculate real GDP? 3. A Bakery buys $4.00 of flour from a Mill and uses the flour to make bread sold to the public for $12.00. Taking these two transactions into account, what is the effect on GDP? 4.  Explain why it is the case that the value of intermediate goods produced and...
Describe the circular flow of the economy by discussing the two markets where households and firms...
Describe the circular flow of the economy by discussing the two markets where households and firms meet. Explain what gets exchanged between these markets and how the two markets interact.
List and discuss the 3 types of firms. What is market failure?  List the roles of...
List and discuss the 3 types of firms. What is market failure?  List the roles of government. Why does international trade occur? What is the exchange rate?
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are...
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. a) How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer? b) Draw two graphs, side by side, illustrating the present situation for the typical firm and for the market c) Assuming there is no change in either demand or the firms’ cost curves, explain what will...
The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are...
The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses. 4 ) Fill in the following blanks with U = go up, S = stay the same, D = go down. In the long run, the price of fertilizer will ......... and the total quantity produced will.......... . In addition, the amount of fertilizer produced by the average firm in the market will ............ 5 ) A large share of...
Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output...
Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output but they are experiencing economic losses. a.[5 marks] Explain how ATC, AVC and MC are related (Note: the relationship of these cost curves is same whether there is loss or profit). Explain how the price of fertilizer compares to the ATC, AVC and MC of producing fertilizer. b.[10 marks] Draw two graphs side by side illustrating the present situation for the single firm and...
Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output...
Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output but they are experiencing economic losses. a.Explain how ATC, AVC and MC are related (Note: the relationship of these cost curves is same whether there is loss or profit). Explain how the price of fertilizer compares to the ATC, AVC and MC of producing fertilizer. b. Draw two graphs side by side illustrating the present situation for the single firm and the entire market....
Firms and households interact in the market economy where factors of production; goods and services; and...
Firms and households interact in the market economy where factors of production; goods and services; and money are moving and circulate. Discuss the circular flow of market using an appropriate diagram
The financial system is financial markets and financial intermediaries through which firms acquire funds from households....
The financial system is financial markets and financial intermediaries through which firms acquire funds from households. Which of the following are advantages the financial system offers for households? Question 1 options: Consumption goods. Household services. The elimination of risk. Liquidity. Information. Risk-sharing.
A firm produces 400 units of output per week and this firms faced with both input and output competitive markets.
A firm produces 400 units of output per week and this firms faced with both input and output competitive markets. This produces a revenue of $20,000 per week. The firm could use capital technology (K1) to produce output together with labor in which case each worker would need 2hours to produce 1 unit of output per unit of K1. The firm could use capital technology (K2) in which case the worker would be able to produce 1 unit of output...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT