Economics class: Tesla touts cost efficiencies as it gears up for more affordable model
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Demand and supply, price elasticity of demand, short-run and long-run costs of a firm, objectives of firms
Click on the article below to read and then answer the questions:
Tesla touts cost efficiencies as it gears up for more affordable model
Tesla plans to produce a new, large-volume vehicle at a new facility in Mexico. Using a diagram, explain what is meant by economies of scale
“We found that even small changes in price have a big impact on demand — very big.” Using a diagram, and your knowledge of price elasticity of demand, analyse the effect of a small price change on total revenue
Evaluate the factors which may influence the choice of objectives for a firm such as Tesla
Gavin Clarke, Emmanuel College
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