After the first oil shock in 1973, the U.S. auto industry had a difficult time adjusting because:

Name: After the first oil shock in 1973, the U.S. auto industry had a difficult time adjusting because:
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Much of the physical capital in an auto factory is specialized, meaning it is designed to produce specific models or types of cars. This made it difficult for the industry to quickly adjust to the demand for smaller and more fuel-efficient cars after the oil shock.

After the First Oil Shock in 1973, the U