ABSTRACT
Let us now turn to the production and trade in motor vehicles, which are regarded by economists as a classic case of an imperfectly competitive industry with differentiated products. Design and costs of production are both elements in a firm’s competitive position. Each is producing models which are distinct from those of other firms but which could be substituted for them. Most economic analysis is devoted to passenger cars, although the category of motor vehicles includes commercial vehicles (CVs) that is vans, trucks, and buses and parts.
