Question

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

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

Answer 1

The Correct Option is D

To determine which factor is not relevant for judging the adequacy of a market, we need to explore each option individually.

• Total Present Domestic Market: This factor is crucial as it helps in understanding the current demand within the domestic region. A large domestic market may indicate a strong potential for sales and growth.
• Competitors and their market shares: Knowing the competitors and their market shares provides insights into the level of competition and potential market entry barriers. This is essential for assessing market adequacy.
• Export Market: This factor is important because it allows understanding of the potential to sell products beyond the domestic market. A strong export market could compensate for a limited domestic market.
• Labour Market: While the availability of labor is crucial for production, it does not directly relate to the adequacy of the market itself. Market adequacy focuses more on demand and competition rather than supply factors.

From the above analysis, the Labour Market is the factor that is not directly relevant for judging the market adequacy, which is primarily concerned with demand, market size, competition, and reach (domestic and export).