A. A group of firms producing differentiated products

B. A group of firms producing distinct commodities

D. A group of firms producing unrelated goods

JAMB 2023 Economics · Question 58

An industry is

Options

A.A group of firms producing differentiated products
B.A group of firms producing distinct commodities
C.A group of firms producing related goods
D.A group of firms producing unrelated goods

Answer: C. A group of firms producing related goods

Explanation written with AI and checked against the answer key

Analyze the question: The question asks for the definition of an "industry" in Economics.

Explain the concept: In Economics, a firm is a single business organization that produces goods or services. An industry is the collection of all firms that produce the same or similar (closely related) products. Examples are the cement industry (Dangote, BUA, Lafarge), the banking industry, and the brewing industry.

Step-by-step solution:

A. Differentiated products: Product differentiation describes how firms in monopolistic competition make similar products look different (brand, packaging). It is not the definition of an industry, and the option is a poor fit.
B. Distinct commodities: Firms producing entirely different commodities would not belong to the same industry, so this is wrong.
C. Related goods: Firms producing related (same or similar) goods make up an industry. This matches the definition.
D. Unrelated goods: Firms producing unrelated goods would be spread across different industries, so this is wrong.

Tip: Remember "Industry = Identical or Inter-related products." If an option talks about unrelated or distinct goods, eliminate it. Also keep the terms apart: a firm is one business, an industry is a group of firms, and a market is where buyers and sellers meet.

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