Essay by Raymond MaHigh School, 12th grade March 1997

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Preston Tucker

Preston Tucker was a car-crazy kid who hung around auto speedways

and grew up to create an automobile Tucker that was years ahead of its

time. He was a man of pioneering spirit, ingenuity, and daring, who

revolutionized Detroit in the 1940s with his stunning car of tomorrow.

It was streamlined, futuristic, and fast the car every American dreamed of

owning, at a price most people could afford. When he wanted to start to

produce the car he faces a lot of barriers, an oligopoly.

In the movie Tucker, there are only a small number of firms. Like

Kaiser-Frazier Automotive Company and Ford Motor Company. Each of the

companies holds a large share and the action from each one may have a great

affect on the others. The product in this movie is car. Car is similar,

differentiated product and this is the characteristics of an oligopoly.

There are many problems when Tucker tries to produce his dream car. Since

his car is a new one, he needs to use a lot of advertising to promote it

in order to attract people to buy it. Like magazine, car shower, and TV.

When Tucker tried to produce his car, he faced many problems. First

he had the financial problem he needed $15 million to produce the bomber

engine. However, he did not have enough money, so he issued 4 million shares

to raise his money. Besides, retooling for a model change could cost $20

million and since his car was a new brand, Tucker was lack of support of

the big firms, so he needed a lot of money to advertise his car. Second,

Tucker's company had to produce 100 cars as the outputs every day so that

he could make a balance. He also needed money to...