Which of the following statements is true about a product market?
A) The cost of labor does not affect the product market because it is an insignificant part of an organization's costs.
B) Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
C) Organizations in a product market are competing to serve the same customers.
D) Product markets typically place a lower limit on the pay an organization will offer its employees.
E) Organizations in a product market must increase the cost of labor every quarter.

Question

Quizplus · Accepted Answer

Product markets refer to the market where organizations are competing to serve the same customers. Hence, option C is the correct statement. Option A is incorrect as labor costs can be a significant part of an organization's costs. Option B may or may not be true as it depends on the customers' preferences. Option D and E are incorrect as there is no direct correlation between product market and employee pay.

Which of the Following Statements Is True About a Product