Which of the following is NOT typically considered part of the business market in a competitive market?

• A. Households purchasing groceries for personal use
• B. Manufacturers buying raw materials
• C. Retailers buying products for resale
• D. Government agencies purchasing office supplies

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the definition of the business market. The business market consists of transactions where businesses, government agencies, or other organizations purchase goods and services for use in production, resale, or operations, rather than for personal consumption.
2. Step 2: Identify the typical participants in the business market. These usually include manufacturers buying raw materials, retailers purchasing products for resale, and government agencies acquiring supplies for official use.
3. Step 3: Recognize that households purchasing goods for personal use are part of the consumer market, not the business market, because their purchases are for personal consumption rather than business purposes.
4. Step 4: Compare each option to the definition of the business market. Manufacturers buying raw materials, retailers buying products for resale, and government agencies purchasing office supplies all fit the business market criteria.
5. Step 5: Conclude that the option 'Households purchasing groceries for personal use' is NOT part of the business market, as it represents consumer behavior rather than business transactions.