Question

Which of the following is true of business markets?

1) Buyers are usually not skilled at comparing competitive product offerings.
2) Buyers have limited purchasing power.
3) Property rights, language, culture, and local laws are the most important concerns.
4) Products sold in such markets are usually highly standardized.
5) Business buyers buy goods to make or resell a product to others at a profit.

Answer 1

The true statement about business markets is that business buyers purchase goods to make or sell to others for a profit. Well-informed buyers and sellers and the impact of technology and globalization are key aspects of modern business markets.

Step-by-step explanation:

Among the statements about business markets, the true option is that business buyers buy goods to make or resell a product to others at a profit. This reflects the nature of business-to-business transactions where companies purchase goods or services for production, resale, or daily operations. Modern business markets are characterized by a few key factors:

• Buyers and sellers are well informed about the market and act independently, competing with one another.
• Thanks to technology and globalization, buyers and suppliers from around the globe can connect via business-to-business websites, increasing competition.
• Market structures are influenced by the degree of competition and can affect a firm's pricing power.

Additionally, in competitive markets, the interaction between supply and demand influences prices and quantities, and the free flow of information is critical, though some transactions may occur with imperfect information.