Question

Are firms primarily buyers or sellers in the goods and services market? In the labor market?

Answer 1

Answer: Firms are primarily sellers in the goods and services market and buyers in the labor market.

Explanation: The goods and services are dispensed by the firms in order to make the potential customers pay the fixed prices and buy them. This activity of the firms categorizes them as 'sellers' in the goods and services market. On the other hand, in the labor market, the firms pay a fixed price for the labor to carry out the activities of manufacturing and selling. Hence, in the labor market, firms are categorized as 'buyers'.