Economics class: Elon Musk signals willingness to sacrifice Tesla margins for market share
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
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Specification:
Market structures
Click to read the article below and then answer the questions:
Elon Musk signals willingness to sacrifice Tesla margins for market share
‘Musk’s apparent willingness to see margins fall further, along with signs that the price cuts had only slightly lifted sales this year, have taken the edge off a strong rally’. With reference to the quote, analyse the implications for the price elasticity of demand of Tesla cars
In oligopoly, we refer to the kinked demand curve. Draw the curve and consider the extent to which it applies in this instance
Draw a monopoly diagram and identify the point at which 1) profit is maximised; 2) revenue is maximised; and 3) sales are maximised
Evaluate the extent to which price cuts alone will be sufficient to drive up sales volumes in the face of intense competition from other car manufacturers
Gavin Clarke, Emmanuel College
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