Eco 550 Industry Assignment

1.Describe the industry and explain the general phase of salmagundi of the circumstance food market representative. ANS:- The industry i pack chosen to describe here is the automobile industry in USA. Since automobile industry is very large and heterogeneous I have taken only the segment cars to analyze in this paper. In the wee years, automobile industry was once overshadow by a few makers ilk Ford and GM manufacturing wide variety of cars suitable to different consumer markets. But the exercise change happened with the oil shock of 1970s resulting in consumers, industrialists and presidential term to rethink on gas guzzlers and trend change towards more(prenominal)(prenominal) discharge efficient vehicles. This led to the advent of more sack efficient and family cars from Japan tar runing pass up to upper middle guide of instruction families. The highly fuel efficient Japanese cars took US market by storm and 80s automobile market became such(prenominal) mor e oligopolistic than earlier years. Since mid-90s, the trend shifted towards greener vehicles and new research and in advance(p) vehicles became the mantra of the industry. many another(prenominal) prototypes of electric powered vehicles were introduced and almost every last(predicate) manufactures introduced their proclaim hybridization vehicles that run on gasoline as surface as electric power.

Currently the car market is evolving into a more consumer and environmental friendly with new advanced implicit in(p) facilities like GPRS, Use of Expert Systems, Fuzzy logic and so forth The R&D involved has translated to greater sunk be for all the companies and competition is intense between the companies to stand show up in t! he crowded car market. Through the introduction of newer cars with newer technologies, companies argon cogitate on higher marginal revenue and lower marginal cost of production. 2.Hypothesize the basic short-run and long-run behaviors of the cast in the industry you have chosen in a market economy. ANS:- In the short run the primal manufacturers like FORD and GM invested heavily in working(a) out and increasing their market share and sales....If you want to get a full essay, order it on our website: OrderEssay.net

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