In the context of competitive markets, a retailer is an example of a:

• A. supplier in the money market
• B. firm operating in the product market
• C. monopolist in the labor market
• D. consumer in the factor market

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the different types of markets mentioned: the money market, product market, labor market, and factor market. Each market involves different participants and transactions.
2. Step 2: Recall that a retailer buys goods from producers and sells them to consumers. This activity takes place in the product market, where final goods and services are exchanged.
3. Step 3: Recognize that in the money market, participants are typically lenders and borrowers dealing with financial assets, which is not the retailer's role here.
4. Step 4: Note that a monopolist in the labor market would be a single employer controlling labor supply, which does not describe a retailer's function.
5. Step 5: Understand that the factor market involves the buying and selling of inputs like labor, land, and capital, where consumers are typically firms purchasing factors, not retailers acting as consumers.