Differences between factor + product market + competitions

What is the product market?

Where goods + services are sold + bought, sometime referred to as the consumer market

What is the factor market?

Where different factors of production are bought + sold, sometimes referred to as the input market.

How do the factor market and product market correlate?

• The factor market is driven by demand in the product market.

• The resources needed to produce goods + services are created or obtained in sufficient quantities to satisfy demand in the product market.

• If a product market doesn’t want a good. the factor market won’t produce them.

What are monoplies?

Company that owns the market, without much competition.

What are the 6 methods to win over customers?

• Branding

• USP (unique selling point)

• Advertising

• Quality

• Price

• Updates.