--%>
Assignment Help - homework help

Describe inherent cost structure of the automobile industry

At the starting of the twentieth century, there were several small American automobile manufacturers. At the ending of the century, there are only three large ones. Assume that this situation is not the result of lax federal enforcement of antimonopoly laws. How do you describe the decrease in the number of manufacturers? (Hint: Describe the inherent cost structure of the automobile industry?)

Automobile plants are greatly capital-intensive.Supposing there have been no impediments to competition, raising returns to scale can decrease the number of firms in the long run.  As firms grow, their costs drop with increasing returns to scale. Larger firms are capable to sell their product for a lower price & push out smaller firms in the long run. Rising returns may cease at some level of output, leaving more than one firm in the industry.

   Related Questions in Biology

  • Q : Globalization of Business What is the

    What is the meaning of Globalization of Business and what is the reason many companies are in the process of expanding themselves?

    		•
  • Q : Leukotrienes and prostaglandins

    Elucidate in brief regarding leukotrienes and prostaglandins?

    		•
  • Q : Trends in Organization Behavior The

    The social and technological changes, knowledge explosion, product and service obsolescence and globalization have immense effects on organizations. Vase on a systematic analysis of past and current events, the following 'megatrends' are predicted, which appear relevant to the study of Organizati

    		•
  • Q : Functions of codons As among the 64

    As among the 64 codons of mRNA, 61 codify amino acids which form polypeptide chains. Describe the functions of the three remaining codons?

    		•
  • Q : Components of a Product Strategy

    Components of a Product Strategy: For developing an effective product strategy, the following components should be incorporated in the product strategy. Making product changes Competitor Intelligence Selling Strateg

    		•
  • Q : Immunology I need help answering a

    I need help answering a couple questions on this assignment, please

    		•
  • Q : Functional | Dysfunctional - Conflict-

    The interactions view does not propose that all conflicts are good some conflicts support the goals of the group and improve its performance; these are functional, constructive forms of conflict. Additionally, there are conflicts that hinder group performance; these are d

    		•
  • Q : Operation Planning Define the term

    Define the term Operation Planning and how it is important in Marketing?

    		•
  • Q : Introduction of the term RCCS Give a

    Give a brief introduction of the term RCCS? And also write down its lifespan?

    		•
  • Q : How to make planning effective How to

    How to make planning effective While it is true that the planning suffers from several limitations, an organization cannot do without planning. The following steps s

    		•