Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of how a large company should be managed, and controlled three quarters of the US car market. As of 2020, GM remains the biggest automaker by sales in the US, but it controls less than 20% of the market. For consumers, this level of competition has been wonderful; the level of choice when it comes
Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of how a large company should be managed, and controlled three quarters of the US car market. As of 2020, GM remains the biggest automaker by sales in the US, but it controls less than 20% of the market. For consumers, this level of competition has been wonderful; the level of choice when it comes to buying and leasing. For GM, as well as other large carmakers, having to operate in this realm isn't always fun, but if pressed they'll admit that there's something distinctly American about the market being hyper-competitive — and they might even acknowledge that having Germans and Japanese brands to do battle against helps them to improve their own capabilities.
State what market structure existed in the automobile industry in the US in the 1950s. Illustrate and explain how equilibrium is determined.
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