One of the Reasons the American Automakers Lost So Much

question 15

Multiple Choice

One of the reasons the American automakers lost so much of the market share is:

• A)American drivers substantially decreased their demand for cars, opting to travel by mass transportation instead.
• B)American automakers focused their efforts on developing automobiles that use alternative sources of energy.
• C)American automakers preferred to produce higher-priced cars and light trucks that had a higher profit margin.
• D)American drivers' taste in cars changes dramatically from one year to the next, making product planning highly volatile.
• E)American automakers concentrated on updating manufacturing equipment and could not maintain market share during the transition.

---

Definitions:

Cartel

An association of manufacturers or suppliers designed to maintain high prices and restrict competition.

Demand Curve

A graph representing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.

Discount Sources

Refers to methods or approaches utilized to obtain discounts or reduce costs on purchases and services.

Cost Function

A mathematical formula that describes how production costs change at different output levels.