in the United States more than 50 firms produce textile, bur only 3 produce automobiles. This statistic shows that government antimonopoly policy has been applied more harshly to the textile industry than to the automobile industry. Can you give an alternative explanation for the difference in number of firms in the two industries?
1 answer
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It takes a lot of very expensive machinery, to say nothing of raw materials, to produce automobiles. Textiles are relatively easy and inexpensive to produce.
