Question description

Select one of the following topics and write a response

The automobile industry is one of the industries seriously affected by the recession that began in late 2007. General Motors and Ford are among the companies affected by this economic slowdown. They responded, among other measures, by downsizing and undertaking layoffs in order to reduce cost.

Topic 1: Discuss the market structure these companies operate in with specific assessment of degree of competition. Discuss income and price elasticities of demand for cars made by these two companies.


Topic 2: Evaluate the effects of emphasizing cost cutting approach to ensure profitability (consider fixed, variable, marginal costs and economies of scale as they apply to these companies). Consider a hypothetical merger between these companies and evaluate the effect it has on their profitability and on the industry as a whole.


  • At least 350 words long (not including title and reference )
  • Use at least 2 academic papers from credible sources to support your ideas (avoid sites such as wikipedia, investopedia, ehow, yahoo answers, etc)
  • Include APA-formatted in-text citations and a list of references (identify all items taken from other sources. Read DCCCD’s policy on plagiarism)
  • This is a research paper
    • limit personal opinions on the issues
    • Do not copy and paste basic definitions of concepts from the text or other places – show the applications of these concepts in the real world
  • The major portion of the paper needs to be written in your own words
  • Paste upload your response by clicking on the subject line of this folder.
  • This assignment is worth 25 points (which means an excellent response earns extra 15 points!)


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