The Automobile Industry Is an Example of A(n)_____

question 196

Multiple Choice

The automobile industry is an example of a(n) _____

• A)monopolistically competitive market, because firms in the automobile industry face an upward-sloping demand curve.
• B)monopolistically competitive market, because it experiences economies of scale.
• C)monopolistically competitive market for legal reasons.
• D)oligopoly, because each firm must produce a large amount of output before it can achieve low average costs.
• E)oligopoly for legal reasons.

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Definitions:

Functional Departmentation

The process of grouping activities into departments based on similar functions or expertise, such as marketing or finance, within an organization.

Cited Advantage

A specific benefit mentioned or referenced, usually to support an argument or to highlight the superiority of a product, idea, or method.

Functional Departmentation

The organization of a company into departments based on specific functions or tasks, such as marketing, finance, or human resources.

Decentralized

A system of management where decision-making authority is distributed among various levels within the organization, rather than concentrated at a single point.