Answer to Question #205687 in Microeconomics for vtg

Question

The conventional definition of the term ‘industry’ is a group of firms producing a single homogeneous product and selling it in a common market. However, the restriction of a single homogeneous product is not met in practice as most of the firms produce many outputs which may or may not be substitutable for each other. •

Discuss the operational meaning for ‘industry’ in the context of industrial economics. In your discussion, be mindful to clearly outline the different categories (levels) of industry in South Africa

Answer 1

Industry refer to group of productive enterprise that produce and supply goods and services. There are three categories of industry which include primary, secondary and tertiary level. Primary level is concerned with extraction of raw materials, secondary level is concerned with manufacturing and the tertiary level is concerned with providing services.