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.
Answer: D
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The minimum wage was instituted to ensure workers
a. a middle-class standard of living. b. employment. c. a minimally adequate standard of living. d. unemployment compensation.
Risk
a. can be reduced by placing a large number of small bets rather than a small number of large bets. b. can be reduced by increasing the number of stocks in a portfolio. c. Both A and B are correct. d. Neither A nor B are correct.
The functions of the Federal Reserve System include
A) Regulate the money supply. B) Supervise the U.S. Treasury. C) Supply the economy with government bonds. D) None of the above.
In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A. Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. B. The wage rate will drop, more workers will be hired, and the unemployment rate falls. C. The workers will go on strike to demand that more jobs be created. D. The government will step in and order firms to hire more workers.