What term is used to describe a group of firms producing similar goods?

The term that describes a group of firms producing similar goods is "Industry." Within an industry, companies typically offer products that are related in terms of function, purpose, and market. For example, the automobile industry includes all firms involved in manufacturing vehicles, while the technology industry encompasses companies that produce electronics or software solutions.

This classification is key in economics as it helps understand market structure, competition levels, and economic contributions. An industry can further be broken down into smaller categories known as "sub-industries" or "segments," which further highlight the specialization within those firms.

In contrast, a market refers more broadly to the interaction between buyers and sellers, encompassing multiple industries. A sector is typically broader than an industry and can include various industries grouped by similar economic activities. The term "collective" does not have a standard economic definition in this context and is less commonly used to refer to a grouping of firms based specifically on their products.