Nearly all of the companies that sell cars in the United States also sell cars in China.
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Nearly all of the companies that sell cars in the United States also sell cars in China. In addition, according to an article in the Wall Street Journal, in China dozens of “local auto makers are kept alive by government support.” We can conclude that there are more firms competing in the Chinese auto market than in the U.S. auto market. Can we also conclude that the Chinese auto market is more productively efficient than the U.S. auto market? More allocatively efficient? Briefly explain.
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No we cannot conclude that the Chinese auto market is more productively efficient or allocatively efficient than the US auto market simply because the...View the full answer
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