Question

how do we participate in the market as producers and consumers? explain with examples

Answer 1

A market primarily have two players, that is producer and the consumer. We can participate in a market by being both producer as well as a consumer. First taking the producer,one may enter the market as a producer by producing a good or a service. However, this entry depends on the type of the product that the individual is willing to produce along with the market type, i.e. perfectly competitive, monopoly or oligopoly. With the required land, labour and capital, one can enter in the market without any barrier and produce the required output.Now being a consumer, one becomes a part of the market by consuming the output that is produced in the market. There is no condition as such on a consumer to be a participant of market.We participate in the market as producers and consumers in the following ways:

 As producers of goods and services, we could be working in any of the sectors,such as in agriculture, industry, or services. Consumers participate in the market when they purchase goods and services thatthey need. These are the final goods that people use as consumers