EconomicsQ1Answer the question by Keeping in mind that ECONOMIST MAKE ASSUMPTIONS,

Question

Answer the question by Keeping in mind that ECONOMIST MAKE ASSUMPTIONS, one common assumption in economics is that the products of different firms in the same industry are indistinguishable. For each of the following industries, discuss whether this is a reasonable assumption:

a) steel

b) novels

c) wheat

d) fast food

Answer 1

wheat is VERY indistinguishable.

Steel, quite indistinguishable also.

Fastfood to quite an extent, the ingredients, nutrition are pretty much the same. Presentation and style is different

Now novels, by firm lets say authors... right? Then it is the most Distinguishable thing in the list as every author would have differnet plot, characters, story, style etc.