One Reason Why, in the Last Four Decades, the Number

question 26

Multiple Choice

One reason why, in the last four decades, the number of new auto makers in the world has been very small compared to the past is that

• A)the automobile cannot be improved upon in any way by new producers.
• B)new auto makers cannot obtain necessary inputs to produce new cars.
• C)governments restrict who can produce automobiles.
• D)new producers cannot match the economies of scale of existing auto makers.

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Definitions:

Market Structure

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Strategic Behavior

The actions taken by companies or individuals in anticipation of their rivals' actions and reactions to maximize their own benefits.

Influences Market Price

Factors or conditions that affect the selling price of goods or services in a market, including supply, demand, competition, and external economic conditions.

Barriers

Obstacles or impediments that prevent or hinder progress, such as trade barriers which can restrict the flow of goods between countries.