Question

Do consumers matter a market? Or is it all about firm profits?

While firms "profit" off consumers do consumers ever "profit" off firms?

What does it mean for a market to be "efficient"?

If a market is "efficient," does this mean consumers are the best off they could possibly be? Are firms the best off they could possibly be?

In your own opinion, what should it mean for a market to be "fair"? (note: this is a normative question!)

Answer 1

Consumers in today's world are the king of the market. In the highly competitive market,consumers matter amarket.All the firms are putting their maximumefforts to produce ahigh quality product in order to keep the customers satisfied.Companies alos offer value addedafter sales service service in order to delight the customers. Thus due to a very high competition in the market we can say that consumers matter a market and firms conduct extensive research in order to make the customers satisfied in addition to earning profits.

Consumers also profit off firms. This has been possible by firms selling off the consumers data and earning profits. At the time of sales,companies collect the consumer's data and this data can be passed on to research firms and thus consumersprofit off firms.

A market is said to be efficient if there is high amount of output generated in terms of revenue earned by the firm with least amount of resources i.e, advertising,marketing and selling expenses. The market is efficeint when the firms produce the maximum output by the lowest possible cost of production.

If a market is efficient, consumers are the best off,as they can get the product at low price. Firms could also be best off by generating higher profits due to lowest possible cost of production.

A market is said to be fair when the products are sold at reasonable price and the product is of good quality. The consumers are never cheated by the seller by making use of unfair practices.Seller makes use of only fair selling practices.