Question : 111) To compete in the automobile market, Tesla must make : 1244959

111) 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) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide.

B) face a trade-off, because producing more of one model means producing less of the others.

C) will choose to only produce the quantity of S and X models where marginal cost equals zero.

D) will always decide on production quantities in which revenues are maximized.

112) The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

A) marginal cost

B) opportunity cost

C) normative economics

D) entrepreneurship

113) The production possibilities frontier shows

A) the various products that can be produced now and in the future.

B) the maximum attainable combinations of two products that may be produced in a particular time period with available resources.

C) what an equitable distribution of products among citizens would be.

D) what people want firms to produce in a particular time period.

114) ________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

A) Comparative advantage

B) Absolute advantage

C) The mixed market system

D) The production possibilities frontier model

115) The production possibilities frontier model assumes all of the following except

A) labor, capital, land and natural resources are fixed in quantity.

B) the economy produces only two products.

C) any level of the two products that the economy produces is currently possible.

D) the level of technology is fixed and unchanging.

116) The ________ production points on a production possibility curve are the points along and inside the production possibility frontier.

A) attainable

B) unattainable

C) productively efficient

D) allocatively efficient

117) The unattainable points in a production possibilities diagram are

A) the points within the production possibilities frontier.

B) the points along the production possibilities frontier.

C) the points of the horizontal and vertical intercepts.

D) the points outside the production possibilities frontier.

118) In a production possibilities frontier model, a point inside the frontier is

A) allocatively efficient.

B) productively efficient

C) allocatively inefficient.

D) productively inefficient.

119) Carmelita can perform either a combination of 35 manicures and 70 pedicures or a combination of 50 manicures and 45 pedicures. If she now performs 35 manicures and 70 pedicures, what is the opportunity cost of performing an additional 15 manicures?

A) 5 pedicures

B) 20 pedicures

C) 25 pedicures

D) 45 pedicures

120) If the production possibilities frontier is linear, then

A) opportunity costs are decreasing as more of one good is produced.

B) it is easy to efficiently produce output.

C) opportunity costs are increasing as more of one good is produced.

D) opportunity costs are constant as more of one good is produced.