Given the Structure of the Automobile Industry, Entering the Auto

question 51

Multiple Choice

Given the structure of the automobile industry, entering the auto manufacturing industry seemed risky. Yet Tesla Motors joined the fray. Rather than attempting to compete head-on with internal combustion engines, Tesla Motors entered the all-electric car segment, a much less crowded niche in the overall car industry. Which of the following is Tesla most hoping to benefit from in this market niche?

• A) network effects
• B) economies of scale
• C) customer switching costs
• D) capital requirements

---

Definitions:

Piaget's

Refers to the theory of cognitive development proposed by Jean Piaget, which posits that children progress through a series of stages of intellectual growth.

Bronfenbrenner's

Referring to Urie Bronfenbrenner's ecological systems theory, which explains how different environmental layers affect child development.

Skinner's

Pertains to B.F. Skinner, a psychologist known for his work in behaviorism, emphasizing the role of reinforcement and punishment in shaping behavior.

Correlational

Pertaining to a statistical relationship between two or more variables, indicating how one may predict or relate to another.