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

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

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the different types of markets mentioned in the problem: labor market, money market, product market, and factor market. Each market involves different participants and transactions.
2. Step 2: Recall that a retailer sells goods or services to consumers, which means they are involved in the product market where final goods and services are exchanged.
3. Step 3: Recognize that in the labor market, firms typically act as employers (buyers of labor), not retailers specifically; monopolist in the labor market refers to a single buyer of labor, which is not the typical role of a retailer.
4. Step 4: Understand that the money market involves financial assets and lending, where suppliers are typically banks or financial institutions, not retailers.
5. Step 5: Conclude that since a retailer sells products to consumers, they are best described as a firm operating in the product market.