Tesla Motors is an electric car company that has tried to open its own dealerships around the U.S. These dealerships are usually opposed by local independent dealerships selling cars from other companies, and these local independent dealerships pressure legislatures and courts to prohibit Tesla from opening new dealerships. Which of the following is correct?
A. By preventing Tesla from opening its own dealerships, competition in the car market is increased.
B. Consumers who would like to buy directly from Tesla are made worse off by such regulations.
C. Tesla stockholders benefit from laws that prohibit the company from opening its own dealerships.
D. Regulatory policies that restrict competition tend to benefit consumers.

Question

07-03-2020
Business

contestada

Tesla Motors is an electric car company that has tried to open its own dealerships around the U.S. These dealerships are usually opposed by local independent dealerships selling cars from other companies, and these local independent dealerships pressure legislatures and courts to prohibit Tesla from opening new dealerships. Which of the following is correct?
A. By preventing Tesla from opening its own dealerships, competition in the car market is increased.
B. Consumers who would like to buy directly from Tesla are made worse off by such regulations.
C. Tesla stockholders benefit from laws that prohibit the company from opening its own dealerships.
D. Regulatory policies that restrict competition tend to benefit consumers.

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jitushashi100 jitushashi100 · Answer 1 · 2020-03-10T15:17:57+01:00

Answer:

B. Consumers who would like to buy directly from Tesla are made worse off by such regulations.

Explanation:

From the following statements, the statement which is correct that is given as OPTION(B).

As the scenario is presented in the question that all the other local independent dealerships are pressuring the legislatures to prohibit Tesla to not open new dealerships, because if Tesla will inaugurate its new dealerships then also the customers and consumer will move to Tesla.

And if the regulation is passed by Tesla then also the customers and consumer will not follow the regulation that would be passed from the respective court.