Explain what the competency statement means in your own words. 1. Explain how household consumers are suppliers and business firms are demanders in the factor market. 2. Analyze how firm demand in the factor market is derived from consumer demand in the product market. 3. Compare the differences between determinants of labor supply and determinants of labor demand. 4. Summarize the profit-maximizing formula and why it is significant. 5. Explain the differences between a monopsony factor market and a perfectly competitive factor market