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How do they get the materials they need?

User Dcousineau
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1 Answer

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Final answer:

Businesses in a market economy acquire the materials they need through a combination of purchasing, importing, producing, and sourcing from suppliers and other businesses.

Step-by-step explanation:

In a market economy, businesses decide how goods and services are going to be produced. They hire labor as they see fit and pay accordingly. Businesses obtain the materials they need through various methods such as purchasing them from suppliers, importing them from other countries, or producing them in-house.

For example, a clothing manufacturer may obtain fabric from a textile mill, buttons from a button manufacturer, and zippers from a zipper supplier. They may also rely on raw materials such as cotton or polyester, which they can either grow or purchase from farmers or wholesalers.

In summary, businesses in a market economy acquire the materials they need through a combination of purchasing, importing, producing, and sourcing from suppliers and other businesses.

User Jay Jeong
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