Figure 212 Tesla Motors Currently Has Three Different Models Available

question 171

Multiple Choice

Figure 2.12 Tesla motors currently has three different models available in Canada; the Model S and the Model 3 (both coupes) and the Model X (an SUV) .Figure 2.12 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
Alt text for Figure 2.12: In figure 2.12, 3 graphs, A, B and C show changes to Tesla motors' production possibilities frontier.
Long description for Figure 2.12: Graph A: The x-axis is labelled, S U Vs, and the y-axis is labelled, coupes.2 convex curves begin from the same point near the top of the y-axis.The curves diverge.The first curve ends a little more than half-way along the x-axis.The point E is plotted a little more than half-way along the curve.The second curve ends further along the x-axis, near the end of the axis.The point F is plotted a little more than half-way along the curve.Graph B: The x-axis is labelled, S U Vs, and the y-axis is labelled, coupes.2 convex curves are shown.The first curve begins approximately 3 fifths of the way up the y-axis and finishes a little more than half way along the x-axis.Point G is plotted a little more than half-way along the curve.The second curve begins near the end of the y-axis, and ends close to the end of the x-axis.Point J is plotted is little more than 1 third of the way along the curve, and point H is plotted 3 quarters of the way along the curve.
-Refer to Figure 2.12. Suppose Tesla has to shut down a portion of its facility as it works on remodelling the facility to merge two of its separate assembly lines in preparation for the production of a new model called a "minibus".The production decision to shut down temporarily will result in a

• A)movement from E to F in Graph A.
• B)movement from G to H in Graph B.
• C)movement from K to L in Graph C.
• D)movement from J to H in Graph B.

---

Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing availability to others.

Not Excludable

A characteristic of a good or service where it is difficult or impossible to prevent individuals from enjoying its benefits, even if they do not pay for it.

Not Rival

A characteristic of a good where its consumption by one individual does not reduce availability or quality for others.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it, typically through the mechanism of property rights.