Tesla Motors Manufactures Its Cars at a Plant in Fremont

Multiple Choice

Tesla Motors manufactures 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 less technical skill.
C) adopted a negative technological change because it chose high-skilled workers over low-paid workers.
D) eroded some of its competitiveness in the luxury electric car market because of its increased cost of production.