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Cletus Inc. plans to overhaul the cafeteria menu and has formed a four-person team to evaluate alternatives. The team identifies four criteria and has ranked the Price criteria as shown in the table below: What is the final price ranking for alternative B?
Pure Rent
Payment to a factor of production (land, specifically) in excess of what is needed to keep it in its current use.
Fixed Supply
A situation where the quantity of a good, service, or resource is limited and cannot be changed in the short run, often leading to inelastic supply.
Supply Curve
A graph showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.
Perfectly Inelastic
Describes a situation in which the quantity demanded or supplied does not change in response to a price change.
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