Answer to Question #323727 in Microeconomics for Ian Penn

Question

Are the firms in the automobile industry operating efficiently in (i) the 1950s and (ii) presently? Explain.

Answer 1

Domestic automotive manufacturing climbed at a 2.36 percent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic automotive sales climbed at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20.