--%>

Market structure in an automotive industry

What type of a market structure in an automotive industry?

E

Expert

Verified

There are many manners to explain market structure of automotive industry two of them are given below:

One of varied buyers makes the population and almost homogeneous sellers. This means that each one (the population) require a car (since a car is not a luxury item), however everyone has different wants (i.e.: contrast a mother of 4 to a construction worker). Therefore, buyers are everyone in population, and they are heterogeneous (different). But sellers are practically the similar Ford, GM, Nissan, Honda, Toyota, Chrysler and etc. all offer the same products. Therefore, they are homogeneous (or same).

Buyers with high brand-preference and highly marketed sellers this means that many automobile buyers have a brand loyalty, and seller market to promote its loyalty. A best example of this is Harley Davidson and Jeep. Amongst their owners both the businesses have produced a kind of community (I am sure as we have all seen two Jeeps passing and the driver’s wave at each other).

   Related Questions in Microeconomics

  • Q : Define Invisible items Invisible items

    Invisible items: All kinds of services that are rendered to or obtained from abroad are termed as invisible items. Such are invisible as these are not made up of any matter or material. The record of such items is not obtainable with the ports. Illust

  • Q : Income elasticity and population growth

    For most families inside the United States, there the income elasticity of demand appears to be lowest, upon average, while looking the demand for: (1) better government. (2) environmental quality. (3) education. (4) children. (5) vac

  • Q : Zero economic profits in long-run

    In long-run equilibrium, a monopolistically competitive firm is making: (a) economic profits. (b) zero economic profits. (c) negative economic profits. (d) revenues that exceed total costs. Can anybody suggest me t

  • Q : Synonym of Word Inequity Of the given,

    Of the given, the closest synonym for the word inequity is: (w) inequality. (x) disproportional. (y) unfairness. (z) regressivity. Can someone explain/help me with best solution about problem of Economics

  • Q : Interdependent economy I am facing

    I am facing problem in this question. Help me in find out correct answer of this economic based question. Explain interdependent economy?  Illustrate it by using an input-output table and model.

  • Q : Decisions of firms and households for

    Microeconomic analysis is more attached than macroeconomics along with the: (1) banking and monetary systems. (2) rates of joblessness and inflation. (3) inequity caused by main depressions. (4) rate of economic development. (5) decis

  • Q : Buying and selling cost in monetary

    Additionally to monetary prices, there the costs of buying and selling comprise: (w) wage payments. (x) monopoly profits. (y) transaction costs. (z) social benefits. How can I solve my economics pr

  • Q : Greatest strategy for maximizing profit

    Monsieur Cournot contains a monopoly on an artesian well from that flows tasty spring water reputed to have medicinal properties. To ignore incurring any variable costs, he is adamants that customers bring their own pails also fill th

  • Q : Price elasticity of demand as the

    The price elasticity of demand is approximately measured as the absolute value of as: (1) (% change in Q) / (% change in Y). (2) ratio of the slopes of demand relative to supply. (3) (% change in Q) / (% change in P). (4) constant slo

  • Q : Problem on siyazama production

    The table below  contains information about  the production possibilities frontier ( PPF or PPC)  of siyazama agricultural cooperative.