Join thousands of students who trust us to help them ace their exams!Watch the first video
Multiple Choice
In the context of microeconomics, companies rarely sell just one product, but instead offer a:
A
fixed supply of labor
B
portfolio of goods and services
C
monopoly in every market
D
single homogeneous product
Verified step by step guidance
1
Understand the question is about the typical product offering of companies in microeconomics, focusing on whether they sell one product or multiple products.
Recall that in microeconomics, firms often diversify their offerings to reduce risk and appeal to different consumer preferences, which leads to the concept of a 'portfolio of goods and services'.
Recognize that a 'fixed supply of labor' refers to the labor market, not the product offerings of a company, so it is not the correct choice here.
Understand that a 'monopoly in every market' is unrealistic because firms usually face competition in at least some markets, so this option is incorrect.
Know that a 'single homogeneous product' describes perfect competition scenarios, but most companies differentiate their products, so the best answer is that companies offer a 'portfolio of goods and services'.