February 19, 2017

Homework Help: Economics

Posted by Ashley on Sunday, August 1, 2010 at 10:02pm.

The big three manufactuers in the U.S. are currently in financial trouble. General Motors and Chrysle are filing for bankruptcy. Chrysler is being take over by Fiat. GM is giving ownership to the government in return for a $20 million bailout.

1 Why is the U.S. auto industry in financial trouble, compared to foreign competition?

2. What will be the economic consequences of a government bailout of the auto industry?

3. Should the government assist the auto industry?

4.4. Should the industry receive bailout if it is an obligopoly? What if the industry was a monopoly or monopolistically competitive? How does it affect your opinion if the industry is obligopoly..etc?

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