For the Past 15 Years the American Public Has Wanted

question 56

Multiple Choice

For the past 15 years the American public has wanted to buy big trucks. The Big Three automakers delivered, investing billions in plants that build gas guzzlers. Now, when customers walk into showrooms, gas mileage is on their mind. Retooling the industry will take years. Mike Quincy says the industry is "like a huge aircraft carrier. It doesn't stop on a dime. It doesn't turn on a dime." What does Mike mean?

• A) The decision time frame to enter into the long run is very long in this industry.
• B) The industry has increasing returns to scale.
• C) Short run decisions are easily reversed.
• D) The industry experiences diminishing marginal returns.

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Definitions:

Downsized

The process of reducing the size or scale of something, often in the context of business workforce reduction.

Personality Conflicts

Disagreements or incompatibilities between individuals due to contrasting personalities.

Economic Reasons

Factors or motives rooted in economic theory or practice that explain certain decisions or behaviors.

Industry Language

Specialized vocabulary and terms used within a specific field or profession, known and understood by those within the industry.