There are a small number of firms that make electric railroad locomotives. In 2012 world exports of electric railroad locomotives (SITC revision 3 number 79111) totaled about $1 billion. Germany exported 5448 million (45 percent of the total), China exported $390 million (39 percent of the total), and Switzerland exported $78 million (8 percent of the total). Which economic model or theory from this chapter is most likely to explain these facts about the patterns of world trade and world production? Why?

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The market structure that best fits the industry for electric railroad locomotives must be an oligop... View the full answer