1.This case highlight many examples of the idea that firms often have several alternatives to choose from in their production planning. Based on the information provided in the case, discuss of few of these key production decisions and what Telsa could have possibly done as an alternative.

2.In looking at the history of Tesla laid out in this case, there are several examples of the differences between production planning over a short-run horizon versus a long-run horizon. Discuss some of the instances where Tesla was constrained in the SR, but was able to implement some alternative production methods in the LR (e.g., having the ability to build the giga-factory in the LR).

3.Explain some of the main reasons why Tesla often fails to make a profit, despite having strong sales and generating sizable revenues? How does this epitomize the distinction between maximizing profit versus maximizing revenues, and the role that costs can play?

4.Discuss the main economic motivation for Tesla and Solar City to merge? What were some of the potential efficiencies/synergies that were discussed?

5.From an economic perspective, discuss how the concept of opportunity cost should possibly factor into Tesla's decision to acquire Solar City? Even if Solar City is able to generate some positive accounting profits, why does this alone not necessarily validate Tesla's decision to acquire solar city? How is this evidenced by some of the investor's concerns?

6.The article discusses how both the residential and commercial solar installation markets were "highly competitive". Explain how this explains some of the challenges that Solar City faced in sustaining profits? How might the merger with Tesla create possible sources of market power, which could then be leveraged?