Why Is the Type of Product Sold in an Industry

question 58

Multiple Choice

Why is the type of product sold in an industry an important characteristic?

• A) A firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product.
• B) A firm that sells intangible goods is usually considered a monopoly.
• C) Expensive products are usually sold by perfectly competitive firms.
• D) Service industries cannot differentiate their products, which makes it easy for new firms to enter the industry.

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Definitions:

Unsuccessfully Defending

Pertains to an outcome where attempts to protect or assert a position, claim, or legal right do not succeed.

Intangible Asset

A non-physical asset having value due to its intellectual or proprietary characteristics, such as patents, trademarks, and goodwill.

Amortized

The gradual reduction of a debt through regular payments that cover both interest and principal over time.

Finite Life

The limited time span during which an asset is expected to be useful in the operations of a business, after which it becomes obsolete or non-functional.