Why Is the Type of Product Sold in an Industry

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.