To compete in the automobile market, Tesla must make many strategic decisions such as whether to introduce a new car model, how to sell and service its cars, and where to advertise
At Tesla's Fremont, California plant, managers must decide on the monthly production quantities of their S and X models. In making this decision, the managers
A) will choose to only produce the quantity of S and X models where marginal cost equals zero.
B) will always decide on production quantities in which revenues are maximized.
C) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide.
D) face a trade-off, because producing more of one model means producing less of the other.
D
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The sum of all the income categories listed in the National Income and Product Accounts adds up to
A) gross domestic product. B) net national product. C) net domestic product at factor cost. D) disposable income after taxes. E) gross national product.
Use the above figure. For this monopolistic competitor, which of the following is INCORRECT?
A) The profit-maximizing rate of output is qe, and the profit-maximizing price is P. B) The demand curve shows a direct relationship between price and quantity demanded. C) The profit-maximizing rate of output is at E, where MR intersects MC. D) A downward sloping marginal revenue curve that is below the demand curve.