ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: A producer is someone who creates and supplies goods or services. Producers combine labor and capital-called factor inputs-to create-that is, to output-something else. Business firms are the main examples of producers and are usually what economists have in mind when talking about producers.

Detailed explanation-2: -Producer services providers are firms that sell services primarily to the business community rather than to individuals and households. Accounting firms, consultants, and computer design services are prominent examples of producer services businesses.

Detailed explanation-3: -A customer is an individual or business that purchases another company’s goods or services.

Detailed explanation-4: -Producers are those who produce or manufacture goods and services, and retailers are the ones who distribute and sell them to final consumers. And a consumer is a person who purchases and uses goods and services by paying or agreeing to pay a price for them.

Detailed explanation-5: -The people who do the selling and buying are producers and consumers. Producers create, or produce, goods and provide services, and consumers buy those goods and services with money. Most people are both producers and consumers. Producers create or provide a certain good (product) or service.