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global automotive industry

1. Choose a real world industry and determine which of the four market structures (perfect competition, monopolistic competition, oligopoly, or monopoly) this industry is most closely related to. Be sure to support your answer by referring to the characteristics that define each market structure.

2. Choose an occupation that you are interested in and research what the average salary is for someone employed in that field. Using what you have learned in this chapter about the determination of wages, justify why someone in this position would be paid the wage that they are paid (Note: you will probably want to mention MRP).

3. Research the exchange rate history over the past year between any two currencies in the world. Try to determine some reasonable economic explanation for the changes in these two currencies (relative to one another).

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1. Choose a real world industry and determine which of the four market structures (perfect competition, monopolistic competition, oligopoly, or monopoly) this industry is most closely related to. Be sure to support your answer by referring to the characteristics that define each market structure.

Let's talk about the global automotive industry. We can consider it as an oligopoly since there are few firms controlling a high percentage of total sales and minimize the effects of price-based competition. There were also significant consolidations over the last few decades and many global giants found it beneficial to join hands with some of their former rivals. For example mergers between Daimler-Benz and Chrysler and between Hyundai and Kia, the association between Renault and Nissan and the takeover of Mazda, Jaguar and Volvo by Ford are some of the most significant examples of ...

Solution Summary

The global automotive industry is researched.

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