Question

Which of the following factors are not relevant for judging the adequacy of market?

• A. Labour Market
• B. Domestic Market Demand
• C. Export Market Demand
• D. Competitors and their market shares

Answer 1

The Correct Option is A

To determine which factor is not relevant for judging the adequacy of a market, we need to understand the context of each factor listed in the options with respect to market evaluation. The factors provided are:

1. Labour Market: The labour market pertains to the supply and demand for labour, where workers seek employment and employers seek workers. It is integral for a business in terms of availability of workforce but does not directly relate to the adequacy of market demand or market characteristics for products or services.
2. Domestic Market Demand: This refers to the demand for goods and services within a country. It is critical for judging market adequacy as it indicates potential sales and market size.
3. Export Market Demand: This involves measuring potential demand in international markets. Like domestic market demand, it is essential for understanding the market's adequacy in terms of expansion and revenue generation opportunities.
4. Competitors and Their Market Shares: Analyzing competitors and their market shares helps in understanding the market landscape, competition intensity, and potential market entry barriers, making it crucial for market adequacy assessment.

Conclusion: Among these factors, the labour market is not directly related to market adequacy in terms of product or service demand. It is more related to resource availability rather than evaluating market potential or competition. Therefore, the correct answer is Labour Market.