Choose the one alternative that best completes the statement or
answers the question.
1) Tesla Motors manufacturers its cars at a plant in Fremont, California. At this plant, Tesla is
able to take advantage of the high level of technical training possessed by its American workers,
but it also sacrifices the ability to pay lower wages had it chosen to open its plant in a low-wage
country such as Mexico, India, or China. In deciding to open the Fremont plant, Tesla
A) faced no trade-offs because employing more technically-skilled workers increased efficiency.
B) faced a trade-off between higher cost and lower precision.
C) adopted a negative technological change because it chose high-skilled workers over low-paid
D) eroded some of its competitiveness in the luxury electric car market because of its increased
cost of production.
Refer to Figure 2-1
Refer to Figure 2-1.